Asked by Riski Prasetyo Putro on Jul 26, 2024
Verified
Which equity index had the lowest volatility in terms of U.S. dollar-denominated returns for the period of five years ending in 2018?
A) Korea
B) Swiss
C) Toronto
D) Nikkei
Lowest Volatility
The condition of experiencing the smallest degree of variation in price over a specified period, often sought after in stable investment options.
U.S. Dollar-Denominated Returns
The gains or losses on an investment reported in U.S. dollars, regardless of the currency of the initial investment.
- Acknowledge the basic principles of risk and return in foreign portfolios, with a focus on the benefits of diversification and the influences of currency exchange.
Verified Answer
SM
Spencer MacmasterAug 01, 2024
Final Answer :
B
Explanation :
The Swiss equity index typically exhibits lower volatility in comparison to other major equity indices. This is attributed to the stability of the Swiss economy, the strong financial system, and the presence of large multinational corporations in the index, which tend to be less volatile.
Learning Objectives
- Acknowledge the basic principles of risk and return in foreign portfolios, with a focus on the benefits of diversification and the influences of currency exchange.