It is better to invest in a country whose shocks:
A) are positively correlated with yours.
B) are independent of yours.
C) are negatively correlated with yours.
D) are common to yours.

Question

Quizplus · Accepted Answer

Investing in a country whose shocks are negatively correlated with yours can help diversify your portfolio and balance out potential losses in one market with gains in the other. It is also a way to minimize overall risk.

It Is Better to Invest in a Country Whose Shocks