Which one of the following statements is true?
A) Global investments must be evaluated just like other investment alternatives.
B) Since global investments can only be bought in the U.S., there is no need to worry about currency exchange rates.
C) Today, very few investors are investing in stocks and bonds issued by foreign firms or in global mutual funds.
D) For most small investors, it makes more sense to invest in stocks and bonds issued by individual foreign firms, rather than in global mutual funds.
E) Evaluating global investments is easy because there is plenty of good information available.

Question

Quizplus · Accepted Answer

Global investments should be evaluated just like any other investment alternative, considering factors such as risk, return, and diversification. Currency exchange rates and political environments in other countries also need to be taken into account.

Which One of the Following Statements Is True