Podcast
Questions and Answers
What type of market is characterized by having signs of development but cannot be considered an emerging market?
What type of market is characterized by having signs of development but cannot be considered an emerging market?
- Established market
- Developed market
- Emerging market
- Frontier market (correct)
What is the risk of making a financial loss as a result of exchange rate movements?
What is the risk of making a financial loss as a result of exchange rate movements?
- Political risk
- Currency risk (correct)
- Market risk
- Foreign investment risk
Which of the following is a risk of investing in foreign countries?
Which of the following is a risk of investing in foreign countries?
- Market risk
- Company risk
- Domestic risk
- Foreign investment risk (correct)
Which type of market is generally defined as a country with well-developed capital markets and economy?
Which type of market is generally defined as a country with well-developed capital markets and economy?
What type of risk occurs when changes to the political climate in a country directly or indirectly impact inflation and interest rates?
What type of risk occurs when changes to the political climate in a country directly or indirectly impact inflation and interest rates?
Which type of market is generally considered to be riskier than developed markets?
Which type of market is generally considered to be riskier than developed markets?
What is the primary goal of international diversification?
What is the primary goal of international diversification?
What is a benefit of adding foreign exposure to a portfolio?
What is a benefit of adding foreign exposure to a portfolio?
Why is diversification important for a portfolio?
Why is diversification important for a portfolio?
What is a result of not diversifying a portfolio?
What is a result of not diversifying a portfolio?
What is a reason why different types of investments perform differently at the same time?
What is a reason why different types of investments perform differently at the same time?
What does diversification enable you to do?
What does diversification enable you to do?
