The security returns from multinational companies tend to have ____ systematic risk than those of domestic companies.
A) more
B) less options with
C) less
D) neither more nor less

Question

Quizplus · Accepted Answer

Multinational companies have operations in multiple countries, which helps to diversify their risk. This diversification results in a lower level of systematic risk compared to domestic companies, which are more influenced by events within their home country. Therefore, multinational companies tend to have less systematic risk.

The Security Returns from Multinational Companies Tend to Have ____