the record of investing in u.s.-based mncs shows that the share prices of u.s.-based mncs behave much like those of domestic firms, without providing effective international diversification. shows that the share prices of u.s.-based mncs behave much differently than those of domestic firms, providing effective international diversification. shows that the share prices of u.s.-based mncs behave much like the currency returns of their foreign markets. none of the above

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demonstrates that MNCs with U.S. headquarters act substantially like domestic corporations in terms of share prices while failing to offer adequate foreign diversification.

What steps may investors take to lower the risk involved with their investing portfolios?

Diversification of a portfolio's assets and asset allocation go hand in hand. The process of choosing a variety of investments within each asset class helps to reduce investment risk and is known as portfolio diversification. The impact of significant market movements on your portfolio may be reduced by asset class diversification as well.

How does bias affect home economics?

Major Takeaways. Home bias is the preference of an investor to invest largely in native equities rather than achieving diversification through international assets. Investors have a home bias due to transaction costs, accessibility issues, and lack of knowledge about international shares.

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