Explain Why International Stocks May Have High Standard Deviations but Low

question 3

Essay

Explain why international stocks may have high standard deviations but low betas.

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Definitions:

Psychologists

Professionals who study cognitive, emotional, and social processes and behavior by observing, interpreting, and recording how individuals relate to one another and their environments.

Mnemonic Device

A technique a person can use to help them improve their ability to remember something.

Link Method

A memory-aid technique that involves forming a mental association between items in a list to improve recall.

Method of Loci

A mnemonic device that involves imagining placing items to be remembered in specific physical locations or a familiar pathway, enhancing recall.