With regard to the OIP,

Question

Quizplus · Accepted Answer

The composition of the optimal international portfolio depends on factors such as an investor's risk tolerance, investment objectives, and home country. Therefore, option A is not correct. Similarly, option B is not always true, as an optimal portfolio may differ in terms of return and risk for investors from different countries. Option C is also not always accurate, as using currency futures contracts to hedge risk may not be suitable for all investors. Hence, the correct answer is D, i.e., none of the options.

With Regard to the OIP