International ________ Can Reduce the Volatility of an Investment Portfolio

question 27

Multiple Choice

International ________ can reduce the volatility of an investment portfolio because national financial markets tend to move independently of each other.

• A)arbitrage
• B)centralization of the MNC's cash
• C)diversification
• D)investment

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition in both short and long term, including the balance sheet, income statement, and cash flow statement.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, thereby preparing the accounts for the next period.

Depreciation Expense

is the charged amount for a particular period for the reduction in value of tangible assets due to usage and passage of time.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, representing the wear and tear on the asset over time.