American Investors Have Several Alternatives Available to Diversify Their Portfolios

question 45

Multiple Choice

American investors have several alternatives available to diversify their portfolios internationally.In terms of transaction costs, which of the alternatives below is least attractive?

• A)mutual funds with an international focus
• B)stocks of U.S.based companies with extensive foreign sales and/or operations
• C)direct investment in foreign stocks
• D)American Depositary Shares

---

Definitions:

Mosaic Tiles

Small, often colorful pieces of stone or glass used to create intricate designs or images in a piece of artwork, widely used in ancient and medieval arts.

Latin

A classical language originally spoken in the Roman Republic and Empire, which has profoundly influenced many modern languages and remains a subject of academic study.

Santa Sabina

An early Christian church in Rome known for its architectural significance and well-preserved classical form.

Aula Palatina

An ancient Roman basilica in Trier, Germany, known for its large size and significant historical and architectural value.