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NEW QUESTION: 1
Keenan Omarik, a portfolio manager in the private banking division of GSK Bank, is trying to convince a conservative client to diversify using international bonds and equities. Currently, the client holds only U.S.
investments (but is well diversified) and is reluctant to change his allocation. All of the following statements support Omarik's recommendation for international diversification EXCEPT:
A. Historically, non-U.S. securities have outperformed U.S. investments on a return basis, at least in part because the non-U.S. economies have experienced higher growth rates.
B. Foreign securities usually have low correlations with U.S. investments and offer more diversification opportunities than domestic investments alone.
C. By replacing domestic investments with foreign investments in a portfolio, investors can reduce the portfolio risk while holding the number of investments constant.
D. By diversifying both domestically and internationally, investors eliminate the risk from worldwide systematic risk factors.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
This statement should read, "By diversifying both domestically and internationally, investors limit risk to worldwide systematic risk factors only." (Much like domestic diversification reduces unsystematic risk from individual investments, but systematic risk still exists.) The other choices are valid arguments for international diversification.
NEW QUESTION: 2
A. Option A
B. Option C
C. Option B
D. Option D
Answer: B
NEW QUESTION: 3
What is the default TCP port through which the Layer 2 VPN client makes an outgoing connection request
in the Layer 2 VPN tunnel architecture?
A. 0
B. 1
C. 2
D. 3
Answer: D
NEW QUESTION: 4
A. Option A
B. Option C
C. Option B
D. Option D
Answer: B
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