If All Capital Markets Are Fully Integrated, Securities of Comparable

question 61

Multiple Choice

If all capital markets are fully integrated, securities of comparable expected return and risk should have the same required rate of return in each national market after adjusting for:

• A) time of day and language requirements.
• B) political risk and time lags.
• C) foreign exchange risk and political risk.
• D) foreign exchange risk and the spot rate.

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Definitions:

Manipulation Motive

The driving intention behind influencing or controlling someone's behavior or emotions for one's own purposes.

Tapping

In psychology, it may refer to the use of repetitive, gentle tapping on specific body parts to reduce emotional distress; in a broader sense, it may simply mean to lightly strike or touch.

Fiddling

The act of making restless or aimless movements with the hands or objects, often as a result of nervousness or boredom.

Married Couples

Legally wed individuals who are united in a personal and intimate relationship, recognized legally, socially, and sometimes religiously.