Which of the Following Factors Is the Best Predictor of Return

question 11

Multiple Choice

Which of the following factors is the best predictor of return in an emerging market?

• A) country credit risk
• B) the global market return
• C) the local market return
• D) the local risk-free rate of interest
• E) the return volatility of the local market relative to that of a developed market

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Definitions:

Personal Prejudices

Preconceived opinions or attitudes held by an individual that are not based on reason or actual experience.

Professional Work

Involves tasks or duties performed by individuals in a formal occupation requiring specialized knowledge and skills.

Ethical Dilemma

A situation in which a difficult choice must be made between two or more alternatives, especially ones that are equally undesirable, involving a moral conflict.

Value Differences

The divergence in beliefs, ethics, and priorities among individuals or groups, often leading to misunderstanding or conflict.