Generally,diversification of investments internationally allows investors to benefit from:

Question

Quizplus · Accepted Answer

Diversification of investments internationally allows investors to benefit from both the currency diversification effect (which reduces the risk associated with currency fluctuations) and the asset diversification effect (which reduces the risk associated with specific markets or sectors), making option D the best choice. Option A is not fully correct, as diversification does not necessarily mean less risk, but rather a shifting of risk. Option B is only partially correct, as it does not take into account the asset diversification effect. Option C is also only partially correct, as it does not take into account the currency diversification effect.

Generally,diversification of Investments Internationally Allows Investors to Benefit From