Question

Explanations for Home Bias include: Group of answer choices domestic securities may provide investors with certain extra services, such as hedging against domestic inflation that foreign securities do not. investors may face country-specific inflation in violation of PPP. there may be barriers, for or informal, to investing in foreign securities. none of the options all of the options

Answer 1

Answer: The correct answer is "all of the options".

Explanation: Explanations for Home Bias include:

- Securities may provide investors with certain extra services, such as hedging against domestic inflation that foreign securities do not.

- There may be barriers, for or informal, to investing in foreign securities.

- Investors may face country-specific inflation in violation of PPP.