Which One of the Following Statements About Foreign Investments Is

question 14

Multiple Choice

Which one of the following statements about foreign investments is true?

• A) In general, major foreign markets always tend to underperform the U.S. market.
• B) Investing in foreign markets may involve specific risks not encountered with domestic securities.
• C) Investing in foreign markets will always produce higher returns because of exchange rate fluctuations.
• D) Foreign markets include equity securities only.

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Definitions:

Probable Cause

A reasonable basis for believing that a crime may have been committed, which is necessary for certain legal actions like issuing a search warrant.

Unreasonable Searches

A term referring to searches conducted by law enforcement without a valid warrant or without an applicable exception to the warrant requirement, violating the Fourth Amendment.

Establishment Clause

One of two provisions in the First Amendment of the U.S. Constitution that protect citizens’ freedom of religion. It prohibits (i) the establishment of a national religion by Congress and (ii) the preference of one religion over another or of religion over nonreligious philosophies in general.

First Amendment

The part of the United States Constitution that protects freedoms of speech, religion, press, assembly, and petition.