Less developed countries may provide even greater risk reduction in a portfolio than developed countries.

Question

Quizplus · Accepted Answer

Less developed countries typically have lower correlations with developed countries and their economies may be less affected by global events, making them a valuable addition to a well-diversified portfolio. However, with potentially higher political and economic risks, it is important to carefully consider the specific investments and their associated risks.

Less Developed Countries May Provide Even Greater Risk Reduction in a Portfolio