Question

Because foreign stocks can produce such high returns, many investment advisers recommend that you invest about 45% of your portfolio in these stocks

True or False?

Answer 1

Investing 45% of your portfolio in foreign stocks is not recommended due to the higher risk associated with these stocks. Consulting with a financial professional is advisable.

Step-by-step explanation:

Investment advisers often recommend diversifying a portfolio by investing in foreign stocks.

While foreign stocks may have the potential to generate high returns over the long term, it is not recommended to allocate 45% of your portfolio solely to these stocks.

Investing in foreign stocks carries a higher level of risk due to factors such as geopolitical events and currency exchange rates.

It is generally advisable to consult with a financial professional who can help determine the appropriate allocation of foreign stocks based on your individual investment goals and risk tolerance.