The Diversification Advantage Correlation Amongst International Stock Markets Has Been

question 28

Multiple Choice

The diversification advantage correlation amongst international stock markets has been diminished in recent years due to:

• A) The decrease in yields of US Treasury Bills.
• B) The emergence of new markets in South America, Asia and Africa
• C) The standardization of international accounting practices governing reporting.
• D) Increased cooperation amongst international government agencies.
• E) Improvements in information technology and globalization.

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Definitions:

Current Ratio

An indicator of how well a company can satisfy its obligations due within a short period, calculated by taking current assets and dividing them by current liabilities.

Acid-Test Ratio

Acid-test ratio is a financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets to its current liabilities.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned over and collected in cash during a period.

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.