International diversification provides a better risk-return trade-off than does investing solely in U.S.securities primarily because

Question

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International diversification allows for exposure to economies that may not be perfectly in phase with the U.S. This can help reduce overall portfolio risk and increase potential returns. A and B may be true, but do not directly address the risk-return trade-off. D is not always true and may vary depending on the specific securities and markets being considered.

International Diversification Provides a Better Risk-Return Trade-Off Than Does Investing