The Relatively Low Correlation Between the Movement of Stock Markets

question 38

Multiple Choice

The relatively low correlation between the movement of stock markets in different countries indicates that:

• A) diversifying a portfolio will increase the risk of investing.
• B) most countries face similar economic conditions.
• C) countries pursue different macroeconomic policies.
• D) different stock markets are not segmented from each other.

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Definitions:

Marginal Analysis

An examination of the added benefits of an activity compared to the added costs incurred by that same activity.

Cell Phones

Portable electronic devices that allow users to make voice calls, send text messages, and access various digital services.

Total Profit

The total income a business earns after subtracting all expenses and costs associated with its operations.

Marginal Benefit

The added value or enjoyment a consumer gets from using an additional unit of a product or service.