ional investment diversification Personal Finance Problem The economies of the world tend to rise and fall in cydes that offset each other International stocks can provide possible diversification for a portfolio heavy on U.S equities. Because research on for foreign equity mutual fund offers the investor the expertise of a global fund manager BF eign companies is usually dificult for individual investors to track on their own, a oreign-stock funds provide exposure to overseas markets at varying levels of risk currency risk can swing in a positive or negative direction Hence, diversification is the key to managing risk Funds that invest overseas fall into four basic categories global, international, emerging-market, and country-specific The wider the reach of the fund, the less risky it is likely to be. Brief explain the differences between the four funds Which of the folowing funds has enormous growth potential, but also poses significant risks? (Select the best answer below) O A. Global fund O B. International fund O C. Emerging-market fund O D. Country-specific fund