Which One of the Following Statements About Foreign Investments Is

Multiple Choice

Which one of the following statements about foreign investments is true?

A) In general, major foreign markets always tend to underperform the U.S. market.
B) Investing in foreign markets may involve specific risks not encountered with domestic securities.
C) Investing in foreign markets will always produce higher returns because of exchange rate fluctuations.
D) Foreign markets include equity securities only.