Which one of the following statements is true?

Multiple Choice

• Investing in global investments does not diversify your portfolio.

• For most small investors, it makes more sense to invest in foreign firms, rather than in global mutual funds.

• Global investments can only be bought in the U.S.

• Global investments must be evaluated just like domestic investments.

• Today, very few investors are investing in stocks and bonds issued by foreign firms or in global mutual funds.