Multinational firms tend to have a lower level of portfolio risk than comparable U.S. firms.

Question

Quizplus · Accepted Answer

Multinational firms have the ability to diversify their operations across multiple countries, which can help to lower their portfolio risk compared to U.S. firms that may operate solely within the domestic market. Additionally, multinational firms can also benefit from currency hedging and other risk management strategies that U.S. firms may not have access to.

Multinational Firms Tend to Have a Lower Level of Portfolio