Over the long term, a portfolio consisting of an ASX200 index and an EAFE index will generally produce returns ____________and have ____________risk than a portfolio comprised solely of the ASX200 index.
A) higher; less
B) lower; less
C) lower; more
D) higher; more

Question

Quizplus · Accepted Answer

Diversifying a portfolio by including both the ASX200 index and the EAFE index can lead to higher returns due to exposure to international markets, while also reducing risk through diversification benefits.

Over the Long Term, a Portfolio Consisting of an ASX200