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CH 19 QUIZ 67 Indirect means of participating in foreign investments include purchasing: A. Exchange traded funds B. Open-end mutual funds specializing in foreign securities C. Closed-end mutual funds D. A and C

Other / Other allied-american-university / Other 01 Sep 2015

CH 19 QUIZ 68 Which of the following are benefits of diversification into foreign securities? A. Diversification offers opportunities for higher returns than a single country portfolio B. Diversification reduces portfolio volatility C. Returns between countries are not highly correlated D. All of the above

Other / Other allied-american-university / Other 01 Sep 2015

CH 19 QUIZ 69 Which of the following reasons might explain why international investing might offer diversification benefits? A. Companies operating in different countries will be affected differently by international events such as crop failures, energy prices, wars, tariffs, etc B. Since the introduction of the euro, European and U.S. markets have a tendency to move in the same direction on an annual basis C. World markets are highly

Other / Other allied-american-university / Other 01 Sep 2015

CH 19 QUIZ 70 The market capitalization of developed countries from 2005 to 2005 A. Increased by about $15 trillion, or approximately 74 percent B. Decreased by about $13 trillion because of the currency crisis in Asia during 1987-98 C. Was relatively flat because of the U.S. stock market downturn of 2000-2002 D. Increased by about $13 trillion because of the inclusion of China, Korea, and Russia into the list of developed countries

Other / Other allied-american-university / Other 01 Sep 2015

CH 19 QUIZ 71 When looking at the list of countries in the emerging market list, A. China has the biggest market capitalization B. Korean has the biggest market capitalization C. Russia has the biggest market capitalization D. Taiwan has the biggest market capitalization

Other / Other strayer university / Other 01 Sep 2015

CH 19 QUIZ 72 Emerging markets have the following characteristics: A. The combined market capitalization of Exxon, General Electric and Microsoft is bigger than any emerging market's capitalization including China B. The International Monetary Fund separates developed and emerging markets by the market capitalization of the respective markets C. Liquidity would be the same as a small company traded on the NASDAQ stock market D. Continu

Other / Other allied-american-university / Other 01 Sep 2015

CH 19 QUIZ 73 There are several reasons why some analysts think that financial market have become more highly correlated in recent years. Which one does not belong? A. The development of a global economy has made companies and those economies more connected and less diverse B. The new European Central Bank has coordinated economic policy across the European Union making that region more coordinated C. U.S. companies operating abroad li

Other / Other allied-american-university / Other 01 Sep 2015

CH 19 QUIZ 74 Developed countries' stock market returns have correlations to the U.S. market that A. Are stable over the years B. Seem to maintain their relative rank order to each other compared to the U.S. C. Are consistently correlated to the U.S. markets at less than 1.00 D. As a group has seen their correlation decline over the last 42 years

Other / Other allied-american-university / Other 01 Sep 2015

CH 19 QUIZ 75 Assume you invest in the European Equity Market and have a 15 percent return (quoted in euros). a. If during this period the euro appreciated by 10 percent against the dollar, what would be your actual return translated into United States dollars? b. What if the euro declined by 10 percent against the dollar, what would your actual return be translated into dollars? c. Recompute the answer based on a 15 percent decline in

Other / Other allied-american-university / Other 01 Sep 2015

CH 19 QUIZ 76 (a.) You invest in the Canadian Equity market and you lose 20 percent (quoted in Canadian dollars). In the meantime the United States dollar declines by 5 percent against the Canadian dollar. What is your percentage gain or loss translated into dollars? (b.) What if the United States dollar declines by 10 percent against the Canadian dollar, what would be your percentage gain or loss translated into dollars?

Other / Other allied-american-university / Other 01 Sep 2015