To Maximize the Benefits of Partial Integration of Capital Markets

question 46

Multiple Choice

To maximize the benefits of partial integration of capital markets

• A)a country should choose to internationally cross-list those assets that are least correlated with the domestic market portfolio.
• B)a country should choose to internationally cross-list those assets that are most highly correlated with the domestic market portfolio.
• C)a country should choose to internationally cross-list those assets that are uncorrelated with the domestic market portfolio.
• D)none of the above

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Definitions:

Fixed Cost

Expenses that do not vary with the level of production or sales activity, such as rent, salaries, and insurance premiums.

Period Cost

Costs that are expensed in the period in which they are incurred, typically including selling and administrative expenses, rather than being included in the cost of goods sold.

Helpline Costs

Expenses incurred in the operation of a support service for customers, such as salaries for help desk staff and telecommunication charges.

Calls

Financial instruments giving the holder the right to buy a stock or commodity at a specified price within a specific time period.