Which of the following is a potential obstacle to international diversification of portfolios?
A)high transaction costs
B)higher information costs
C)both A and B
D)none of the above

Question

Quizplus · Accepted Answer

Both high transaction costs and higher information costs can be obstacles to international diversification of portfolios. Transactions costs can make it expensive for investors to buy and sell securities in foreign markets, while higher information costs can make it difficult for investors to access reliable information about foreign companies and markets. These factors can make it more challenging for investors to effectively diversify their portfolios internationally.

Which of the Following Is a Potential Obstacle to International