Which of the following statements is incorrect regarding international diversification? International diversification will benefit investors...
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Finance
Which of the following statements is incorrect regarding international diversification? International diversification will benefit investors based in developing economies more than investors based in developed economies, since there are less opportunities to diversify across sectors in developing economies. Benefits from international diversification increase when international trade and capital flows are restricted (or global decoupling takes place). International diversification will benefit investors based in developed economies more than investors based in developing economies, since there are less opportunities to diversify across sectors in developed economies. Benefits from international diversification in equities decrease during significant market events such as the Technology Bubble or the Global Financial Crisis. International diversification should result in improved Sharpe ratio
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