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CH 19 QUIZ 55 Administrative problems such as different settlement procedures for various markets can best be avoided by A. Becoming thoroughly comfortable with each country's procedures B. Using a local broker C. Investing in a mutual fund D. None of the above

Other / Other University of Phoenix / Other 01 Sep 2015

CH 19 QUIZ 56 Which of the following statements about the information available on publicly traded foreign firms is NOT true? A. At least the accounting standards are the same for U.S. and international companies B. Comparative industry data is generally not available C. If you purchase a foreign firm directly on a foreign market you will receive your annual reports in the language of the country which most likely will not be English

Other / Other University of Phoenix / Other 01 Sep 2015

CH 19 QUIZ 57 Direct international investment without the numerous associated administrative problems can be achieved by purchasing shares A. Of foreign firms which trade on the New York Stock Exchange or NASDAQ B. In a mutual fund C. In an exchange traded fund D. Of multinational corporations

Other / Other University of Phoenix / Other 01 Sep 2015

58. The benefits of American Depository Receipts (ADRs) are many. Which of the following is not a benefit? A. ADRs allow foreign stocks to be traded very similarly to United States stocks B. Commission rates on ADRs are generally lower because the actual stock certificate is held by a bank C. Dividends are paid in United States dollars D. The annual report you receive will be in English

Other / Other University of Phoenix / Other 01 Sep 2015

CH 19 QUIZ 59 Methods of indirect international investment include all of the following except A. Buying shares of a multinational corporations B. Investing in mutual or closed-end worldwide investment funds C. Hiring a specialist in foreign investments D. All of the above are methods

Other / Other University of Phoenix / Other 01 Sep 2015

CH 19 QUIZ 43 Correlations between U.S. returns and foreign stock returns appear to remain fairly stable from period to period.

Other / Other University of Phoenix / Other 01 Sep 2015

CH 19 QUIZ 44 Investing directly in the international equities markets refers to buying shares A. Of multinational corporations B. Of foreign companies C. Of internationally invested mutual funds D. More than one of the above

Other / Other University of Phoenix / Other 01 Sep 2015

CH 19 QUIZ 45 Between year end 2002 and 2005, the value of the United States equity markets as a percentage of the total World equity markets has A. Increased 100 percent B. Increased from 35 percent to 42 percent of the total developed market C. Decreased from 53 percent to 33 percent of the total developed market D. Decreased slightly from about 53 percent to 47 percent of total developed market

Other / Other University of Phoenix / Other 01 Sep 2015

CH 19 QUIZ 46 The second largest equity market in the world at the end of 2005 is that of A. Japan B. The United Kingdom C. The United States D. Germany

Other / Other Other / Other 01 Sep 2015

CH 19 QUIZ 47 The investor can maximize risk reduction benefits by combining United States securities with those of countries which are _________. A. Oil exporting nations B. Negatively or least positively correlated with the United States C. Correlated with the United States D. None of the above

Other / Other University of Phoenix / Other 01 Sep 2015