Which of the following statements regarding a U.S. investor's investment in foreign stocks today is true?
A) Investing in foreign equities is still very difficult for the U.S. investor, which wipes out the benefits of diversification that may be had.
B) Although investment in foreign equities is relatively easy for U.S. investors and some diversification benefits remain, many U.S. investors choose not to invest in foreign
Markets.
C) Because international mutual funds and ETFs have made foreign investment as easy as investing domestically, there is no longer any diversification benefit to be had from
Investing in foreign equities.
D) Because dividends earned on foreign stock investments are taxed at a higher rate than dividends on domestic stocks, the after-tax returns on the foreign investments do not
Compensate investors for the risk involved.
Correct Answer:
Verified
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