The Relatively Low Correlation Between the Movements of Stock Markets

question 21

Multiple Choice

The relatively low correlation between the movements of stock markets in different countries reflects all of the following basic factors except:

• A)countries pursue different macroeconomic policies and face different economic conditions,so their stock markets respond to different forces and can move in different ways.
• B)different stock markets are still somewhat segmented from each other by capital controls.
• C)restrictions on cross-border capital flows still separate different stock markets.
• D)barriers to cross-border capital flows drastically increase the ability of capital to roam the world freely in search of the highest risk-adjusted return.

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Definitions:

Lone Pairs

Electron pairs in the outer shell of an atom that are not involved in chemical bonding.

Orbital

An equation that represents the wave-like actions of one or two electrons in an atomic structure.

Electrons

Subatomic particles with a negative electric charge, found orbiting the nucleus of an atom, fundamentally involved in chemical bonds and reactions.

Electronic Configuration

The distribution of electrons of an atom or molecule in atomic or molecular orbitals.