Question

Current research suggests that a. investors can get more diversification with shares of domestic, large-cap stocks. b. investors can get more diversification with shares of domestic, small-cap stocks. c. investors can get more diversification with shares of foreign, large-cap stocks. d. investors can get more diversification with shares of foreign, small-cap stocks.

Answer 1

d.) investors can get more diversification with shares of foreign, small-cap stocks.

Step-by-step explanation:

Diversification could be regarded as one of the ways used in balancing of risk as well as reward in ones investment portfolio. It is been reffered to as practice involving spreading ones investments around , then ones exposure to any one type of asset will be limited. This is a way to reduce the volatility of ones portfolio over time.

More diversification can be gotten by

Small-cap stocks which are regarded as public companies with a market capitalizations that ranges from $300 million up to $2 billion. It should be noted that Current research suggests that investors can get more diversification with shares of foreign, small-cap stocks.