In general, foreign-pay bonds provide_______ rates of return and offer______ diversification effects for U.S. investors.
A) non-competitive; positive
B) competitive; positive
C) non-competitive; negative
D) competitive; negative

Question

Quizplus · Accepted Answer

Foreign-pay bonds often offer competitive rates of return due to differences in interest rates, economic conditions, and monetary policies across countries. They also provide positive diversification effects because they introduce currency and country risks different from those associated with U.S. investments, potentially reducing overall portfolio risk.

In General, Foreign-Pay Bonds Provide_______ Rates of Return and Offer______

In General, Foreign-Pay Bonds Provide_ Rates of Return and Offer