1. Legal/Regulatory Risk is..
A. when foreign assets are adversely impacted as a result of changes in the host country's laws and regulations
B. when the host country eliminates barriers to invite foreign companies to invest
C. when the host country imposes new tariffs and quotas on imported goods
D. when a political situation in the host country prevents foreigners from investing
2. By efficiently diversifying, an investor can:
a. Eliminate risk
b. Eliminate systematic risk
c. Eliminate unsystematic risk
d. Can't really have much affect on risk due to market forces