Type "True" or "False." If you answer "False", then explain why the statement is false (1 line). If you answer "True" do NOT explain.

Assume that a portfolio is 50% invested in U.S. stocks and 50% in Japan ( = 0. 5). Annualized expected returns are 7% and 7% for the USA and Japan, respectively. The standard deviation of US stocks and Japanese stock returns is 10% (identical) and but the correlation between the two is 0. From the point of view of an American investor, there are benefits from diversifying a portfolio internationally investing in Japan.