Which of the following statements is not true?
A)An investor seeking global diversification with less than $200,000 to invest should invest in global mutual funds.
B)Changes in currency exchange rate may affect the return on your investment.
C)Today, more and more investors are investing in stocks and bonds issued by foreign firms and global mutual funds.
D)An investor in Canada cannot purchase shares in a foreign company.
E)Because of international accounting rules, evaluating foreign investments is more difficult than evaluating investments in Canada.

Question

Quizplus · Accepted Answer

An investor in Canada is certainly able to purchase shares in a foreign company, either through a Canadian brokerage firm that offers international investing or by opening an account with a foreign brokerage firm. The other statements are true, as global diversification is often achieved through global mutual funds, changes in exchange rates can impact investment returns, there is an increasing trend of investing in foreign securities, and international accounting standards can present challenges in evaluating foreign investments.

Which of the Following Statements Is Not True