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Adding international securities to a domestic portfolio is likely to: i) Diversify away non-systematic risks. ii) Increase both portfolio risk and return. iii) Decrease portfolio
Adding international securities to a domestic portfolio is likely to: i) Diversify away non-systematic risks. ii) Increase both portfolio risk and return. iii) Decrease portfolio risk without affecting return. iv) Have no impact on the portfolio return and risk. Which of the following is correct?
A. Only (iv) is true, the rest are false. B. (i) and (iii) are true, but (ii) and (iv) are false. C. (i), (ii) and (iii) are true, but (iv) is false. D. Only (ii) is true, the rest are false.
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