Investors and firms who diversify their U.S. portfolios by buying foreign stocks or investing in foreign subsidiaries take on a much higher level of portfolio risk than if they had invested in domestic stocks or companies.

Question

Quizplus · Accepted Answer

Diversifying portfolios by investing in foreign stocks or subsidiaries can actually reduce risk through diversification, as it spreads exposure across different markets and economic conditions.

Investors and Firms Who Diversify Their U