Investors and firms who diversify their Canadian portfolios by buying foreign stocks or investing in foreign subsidiaries take on a much higher level of risk than if they had invested in domestic stocks or companies.

Question

Quizplus · Accepted Answer

Diversifying portfolios by investing in foreign stocks or subsidiaries can actually reduce risk through exposure to different markets and economic conditions, potentially offsetting domestic market volatility.

Investors and Firms Who Diversify Their Canadian Portfolios by Buying