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Intl Portfolio Mgmt Quiz

Which of the following least likely explains why risk reduction may be possible by incorporating international securities into a portfolio?


A) Differences in monetary policies among national economies.
B) Differences in fiscal policies among national economies.
C) Differences in the timing of economic cycles among national economies.
D) Differences in industrial composition of particular markets.

D

NO EXCUSES

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D is the correct answer

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oh just read ur response abushey31... wow... i remember reading in the case for international diversification that due to differences in fiscal/monetary policies one can churn returns from international diversification... guess i'll have to re-read stuff! darn!

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djinn Wrote:
-------------------------------------------------------
> oh just read ur response abushey31... wow... i
> remember reading in the case for international
> diversification that due to differences in
> fiscal/monetary policies one can churn returns
> from international diversification... guess i'll
> have to re-read stuff! darn!

RTFQ

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International Diversification = Country based diversification
Global Diversification = Industry diversification

Question is about "international" so country factors are correct, industry factors aren't

Answer: D

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