Given an optimistic economic and stock-market outlook for a country, the investor should underweight the allocation to this country in his/her portfolio.

Question

Quizplus · Accepted Answer

A optimistic economic and stock-market outlook for a country typically indicates a positive growth potential, hence a higher allocation to that country may be beneficial for the investor. Therefore, the investor would generally overweight the allocation to this country in his/her portfolio.

Given an Optimistic Economic and Stock-Market Outlook for a Country