Question

Adding foreign stocks that are riskier than the portfolio average will always increase the risk of the portfolio.

Answer 1

The given statement is false.  A portfolio is a collection of financial assets, such as securities, bonds, commodities, cash, and cash equivalents, such as closed-end funds and exchange-traded funds (ETFs).

How would foreign stocks Help in portfolio diversification?

• A portfolio is a collection of financial assets, such as securities, bonds, commodities, cash, and cash equivalents, such as closed-end funds and exchange-traded funds (ETFs). Most people think that a portfolio's core consists of equities, bonds, and cash.

• By diversifying your assets, it is one strategy to maintain a balance between risk and return in your investing portfolio. Spreading your investments out will limit your exposure to any one form of asset. This approach is known as diversification. This routine is intended to gradually lessen the volatility of your portfolio.
• Building a portfolio with a variety of investments that have various estimated risks and rewards is the technique of diversification. You can be protected by diversification from circumstances that could negatively impact certain investments.

Hence, The given statement is false.

To learn more about portfolio diversification refer to:

brainly.com/question/28149297

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