The correct answer is C. global diversification.
Global diversification is a technique of lowering risk for multinational companies and globally designed portfolios. It involves investing in assets from different countries and regions, which can help to reduce the overall risk of a portfolio. This is because the performance of assets in different countries and regions is often not correlated, meaning that they tend to move in different directions. As a result, when one asset class is performing poorly, another asset class may be performing well, which can help to offset the losses.
National diversification, on the other hand, is a technique of lowering risk by investing in assets from a single country. This can be helpful in reducing the risk of a portfolio if the economy of that country is strong and stable. However, it can also lead to higher risk if the economy of that country is weak or unstable.
Behavioral diversification is a technique of lowering risk by investing in assets that are not correlated with each other. This can be helpful in reducing the risk of a portfolio if the assets are likely to move in different directions. However, it can also lead to higher risk if the assets are all likely to move in the same direction.
Behavioral finance is a field of study that examines the psychological factors that influence financial decision-making. It can be helpful in understanding why people make the financial decisions they do, and it can also be used to develop strategies to help people make better financial decisions.