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.

Question

Quizplus · Accepted Answer

Diversifying among stocks based in countries outside the United States can make your portfolio less vulnerable to conditions in the United States. This is because economic conditions, interest rates, and other factors affecting stock performance can vary from one country to another, potentially offsetting risks associated with any single market.

Diversifying Among Stocks Based in Countries Outside the United States