8. The The U.S. equity and bond markets have grown in tettes of their relative size of the world equity and bond market a. true b. false 9 A U.S. investor who ignores foreign markets reduces overall number of investment choice a. true b. false 10. Diversification with foreign securities can help reduce portfolio risk a. true b. false 11. It is very important when diversifyine that the correlation between rates of countries be high and very stable over time. a. true b. false 12 Subordinated bondholders have claim to the assets of the firm only after the firm has satisfied the claims of all senior secured and debenture bondholders. a.true b. false 13. Municipal bond nominal yields are generally below comparable taxable bond yields. a. true b. false 14. The correlation of returns between a single pair of countries remains constant over time. a. true b. false 15 If you are considering investing in German stocks as a means to reduce the risk of your portfolio, the initial factor that you should examine is The average rate of return of the portfolio when you combine U.S. and German stocks, b. The standard deviation of the German stocks The standard deviation of the German stocks compared to the standard deviation of U.S. stocks. d The correlation between the rates of return for German stocks and U.S. stocks The coefficient of variation (CV) of rates of return for German stocks versus the CV of rates c. of return for U.S. stocks. 16. All of the following are considered fixed income investments except Corporate bonds. Preferred stock. Treasury bills, notes, and bonds. Money market mutual funds. Certificates of deposit (CDs)