Because of increasing correlation between U.S. markets and foreign markets, most professional investors now recommend:
A) zero exposure to foreign markets for the foreseeable future.
B) replacing foreign stock exposure with U.S. Treasury bonds.
C) maintaining some reasonable exposure to foreign markets.
D) replacing foreign stock exposure with investment grade sovereign.

Question

Quizplus · Accepted Answer

Maintaining some reasonable exposure to foreign markets is recommended to diversify risk and potentially benefit from growth opportunities in different regions, despite increasing correlations.

Because of Increasing Correlation Between U