Question:

1. 2. STEP: 2 of 2 Suppose that California Co., a U.S.-based MNC that invests in projects all over the world, is analyzing potential projects in various countries in an attempt to pursue diversification. In addition to California Co., consider another U.S.-based MNC named Dakota Co. Dakota Co. produces and sells wooden toys primarily to Spain and France. The frontier of efficient project portfolios for each firm are shown in the following graph. Use the graph to answer the question that follo EXPECTED RETURN A B RISK ? True or False: Curve A most likely belongs to California Co. and Curve B most likely belongs to Dakota Co. True False