Diversifying among stocks based in countries outside the United States
A) makes your portfolio less vulnerable to conditions in the United States.
B) is too expensive to use as a means of diversification.
C) makes your portfolio's returns less volatile because foreign stocks are less volatile than U.S. stocks.
D) is too risky for individual investors to consider.
Answer: A
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What BEST explains why an international company would relocate employees to a foreign country?
A) Employees would learn about unique challenges the company faces in different parts of the world. B) Employees would have an opportunity to learn a foreign language and a new culture. C) Employees would accept less compensation in different parts of the world. D) Employees would have less ability to interfere in important decisions from remote locations.