Financial Planner

Category - Investment Planning

What type of bonds helps provide for diversification?
  1. Dividend Bonds
  2. Local Bonds
  3. Foreign Bonds
  4. Control Bonds
Explanation
Answer: C - Foreign bonds helps provide for diversification. These bonds offer a mode of diversification that could offer higher returns at a given point of time than alternative domestic bonds. They may be more difficult to invest in than domestic bonds and carry higher transaction costs.
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz