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Which of the Following Is Not Likely to Be a Reason

Question 57

Multiple Choice

Which of the following is not likely to be a reason for investors to use the global capital market?


A) They have a higher cost of capital as compared to purely domestic capital markets.
B) They have a much wider range of investment opportunities than in a purely domestic capital market.
C) They can diversify their portfolios internationally.
D) They can reduce their risk through portfolio diversification to below what could be achieved in a purely domestic capital market.

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