An advantage of international diversification is the
A) reduction in the variability of future cash flows due to domestic business cycles.
B) increase in the availability of capital.
C) diversification of political risk.
D) all of the above.

Question

Quizplus · Accepted Answer

International diversification provides several advantages, including the reduction in the variability of future cash flows due to domestic business cycles, increased availability of capital, and diversification of political risk. Therefore, option D, which states that all of these advantages are feasible with international diversification, is the correct answer.

An Advantage of International Diversification Is the