Final answer:
The key reason for purchasing an international mutual fund is to benefit from the expertise of portfolio managers, who can expertly select and manage a diversified foreign stock portfolio, saving investors time and effort, and providing diversification benefits. Option B.
Step-by-step explanation:
The most important reason for an investor interested in adding foreign stocks to his portfolio to do so by purchasing an international mutual fund is B) He would have the benefit of the portfolio managers picking the stocks instead of having to rely on his efforts.
The reason this stands out is that mutual funds are professionally managed investment programs that allow investors to achieve a diversified portfolio without the need to dedicate substantial time or expertise to the selection and management of foreign stocks.
Professional managers have the necessary experience and resources to research and monitor the performance of a wide range of investments, which can be particularly valuable when dealing with foreign markets that may have different regulations, tax implications, and market dynamics.
Option D is also a relevant consideration, as mutual funds enable investors to have a mix of foreign and domestic stocks, which can maximize diversification and potentially reduce risk.
Options A and C, concerning foreign taxation and voting rights, although they have some validity, are generally not the principal reasons an investor would choose a mutual fund over direct investment in foreign stocks.
Hence, the right answer is option B.