Asked by Nicholas Lalla on Jul 11, 2024
Verified
International investing
A) cannot be measured against a passive benchmark, such as the S&P 500.
B) can be measured against a widely-used index of non-U.S. stocks, the EAFE Index (Europe, Australia, Far East) .
C) can be measured against international indexes.
D) can be measured against a widely-used index of non-U.S. stocks, the EAFE Index (Europe, Australia, Far East) , and against international indexes.
E) None of the options are correct.
EAFE Index
A stock index that measures the equity market performance of developed markets outside of the U.S. & Canada, known as Europe, Australasia, and Far East.
International Indexes
Benchmarks that measure the performance of financial markets outside of the investor's home country, reflecting the conditions and returns of foreign markets.
- Recognize the importance of international benchmarks, like the EAFE Index, in assessing the performance of international investments.
Verified Answer
HA
Hailee AdamsJul 16, 2024
Final Answer :
D
Explanation :
International investing can indeed be measured against a variety of benchmarks, including the EAFE Index, which tracks stocks from Europe, Australia, and the Far East, as well as other international indexes. This allows investors to compare the performance of their international investments against these benchmarks.
Learning Objectives
- Recognize the importance of international benchmarks, like the EAFE Index, in assessing the performance of international investments.