One of the diversification principles requires that a firm\'s investments in dif
ID: 2749869 • Letter: O
Question
One of the diversification principles requires that a firm's investments in different countries be:
Question 2 options:
a. positively correlated in their returns.
b. positively uncorrelated in their revenues and expenses.
c. negatively correlated in their revenues and expenses
d. positively or negatively uncorrelated between their revenues only.
e. none of the above
a. positively correlated in their returns.
b. positively uncorrelated in their revenues and expenses.
c. negatively correlated in their revenues and expenses
d. positively or negatively uncorrelated between their revenues only.
e. none of the above
Explanation / Answer
One of the diversification principles requires that a firm's investments in different countries be positively uncorrelated in their revenues and expenses.