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

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Definitions:

Persuasive Messages

Communications designed to influence or convince the audience towards a particular viewpoint or action.

Audience's Personalities

The collective characteristics, traits, and preferences that define the individuals who make up a particular audience.

Behavioral Economics

A field of study that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Predictable Manner

A way of acting or occurring that is expected based on patterns or previous experience, lacking in surprises or variability.