From a U.S. investor perspective,diversifying in the international stock markets adds foreign exchange risk and political risk to the portfolio.

Question

Quizplus · Accepted Answer

When investing in international stock markets, investors face foreign exchange risk as the value of their holdings may fluctuate based on currency exchange rates, and political risk as changes in government policies, regulations, or instability in the host country could impact the value of their investments.

From a US Investor Perspective,diversifying in the International Stock Markets Adds Foreign