Question Completion Status: QUESTION 3 The TCJA-Tax Cut & Jobs Act of December 2017 (also referred to as the 'Trump tax cuts') led to, A. Lower corporate income tax rates O B. Higher incentives for multinationals to keep cash abroad 23 O C. Few significant changes for multinationals O D. (A) and (B) are both correct O E.(A). (B) and (C) are all correct You are a US based investor. You are initially fully invested in US stocks. You are considering diversifying your portfolio by including Japanese stocks. However, you notice that from 1980 to 2015 the US stock market has yielded a monthly Sharpe Ratio of 0 152 while the Japanese stock market in the same period yielded only 0.057. The correlation of the US stock market with the Japanese stock market is 38% Which of the following statements are likely to be true? O A. You should not include Japanese stocks in your portfolio as Japanese stock are likely to continue to underperform O B. You should diversity into Japanese stocks as Japanese stocks are likely to outperform US stocks in the future OC. The diversification benefits of including Japanese stocks are outweighed by the low Sharpe ratio of Japanese stocks O D. You should include Japanese stocks in your portfolio as the diversification benefits will improve the expected Sharpe ratio of your portfolio O E. It would be better to diversify into Canadian stocks as the correlation between the US stock market and Canadian stock market is 77%