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The Reaching Beyond Our Border Box in Chapter 19 Provides

Question 267

Multiple Choice

The Reaching Beyond Our Border box in Chapter 19 provides the following advice when trading in foreign stocks?


A) Proceed with caution when investing in the stock of a firm where the home country has political unrest and an unstable currency.
B) Avoid purchasing ADRs [American Depository Receipts] because you never win with the exchange rates.
C) When buying or selling foreign securities, avoid mutual funds and exchange traded funds. They seem to have hidden stocks that are worthless intermixed with some good ones.
D) Remember: the lower the risk, the higher the return.

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