All of the following are benefits of geographic diversification in investment portfolios EXCEPT:
A)Gaining exposure to currencies other than the U.S.dollar.
B)Some global markets have growth rates higher than the U.S.,offering potentially higher returns.
C)Global markets behave completely independently of U.S.markets.
D)Many global markets are not highly correlated with U.S.markets.

Question

Quizplus · Accepted Answer

Global markets are not completely independent of U.S. markets, and can still be influenced by them. This is a common misconception about geographic diversification. Therefore, the only answer that is not a benefit of geographic diversification is C.

All of the Following Are Benefits of Geographic Diversification in Investment