In some respects, internationally diversified portfolios are different from a domestic portfolio because: Investors may also acquire foreign exchange risk.
What is an internationally diversified portfolio?
An internationally diversified portfolio refers to a kind of stock market that focuses on the international scene instead of the local scene. This sort of portfolio helps an investor network with external markets instead of the local markets.
Unlike the domestic market, investors stand the chance of incurring foreign exchange risks. When they dwell in the local markets, these risks are bypassed.
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