Returns from internationally diversified portfolios tend to be superior to those yielded by purely domestic ones.

Question

Quizplus · Accepted Answer

International diversification helps to reduce portfolio risk and exposure to country-specific risks, and also allows investors to benefit from global economic growth and investment opportunities. Therefore, internationally diversified portfolios have the potential for higher returns compared to purely domestic ones.

Returns from Internationally Diversified Portfolios Tend to Be Superior to Those