By using the global capital market,investors can diversify their portfolios internationally,thereby reducing their risk to below what could be achieved in a purely domestic capital market.

Question

Quizplus · Accepted Answer

Investing internationally allows for a greater diversification of assets, which can result in lower overall risk in an investor's portfolio. The global capital market provides access to a variety of investment opportunities, further increasing diversification potential.

By Using the Global Capital Market,investors Can Diversify Their Portfolios