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Question

Keenan Omarik, a portfolio manager in the private banking division of GSK Bank

Accepted Answer

By diversifying both domestically and internationally, investors eliminate the risk from worldwide systematic risk factors.

Answer

By replacing domestic investments with foreign investments in a portfolio, investors can reduce the portfolio risk while holding the number of investments constant.

Answer

Foreign securities usually have low correlations with U.S. investments and offer more diversification opportunities than domestic investments alone.

Answer

Historically, non-U.S. securities have outperformed U.S. investments on a return basis, at least in part because the non-U.S. economies have experienced higher growth rates.

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