Which of the following are benefits of investing in international markets: I) Exposure to high returns provided by some emerging market
II) Increased diversification due to low correlation amongst international markets
III) Protection from foreign exchange risk

Question

Quizplus · Accepted Answer

I) Exposure to high returns provided by some emerging markets is a benefit of investing in international markets. II) Increased diversification due to low correlation amongst international markets is also a benefit. III) Protection from foreign exchange risk is not necessarily a benefit, as investing in international markets also carries currency risk. Therefore, choices B and C can be eliminated. Choice E is not correct as there are benefits to investing in international markets. Therefore, the best answer is D: I and II only.

Which of the Following Are Benefits of Investing in International