Over long periods, returns from internationally diversified portfolios tend to be superior to those yielded by purely domestic ones. Over any single short or intermediate period, however, international diversification can yield sub par returnsparticularly during periods when the dollar is appreciating in value relative to other currencies.

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This statement is true, as internationally diversified portfolios provide better long-term returns, but can experience lower returns during short or intermediate periods when the value of the dollar appreciates.

Over Long Periods, Returns from Internationally Diversified Portfolios Tend to Be