While Globalization Encourages Security Markets in Different Countries Move Together

question 78

Multiple Choice

While globalization encourages security markets in different countries move together, _________ will be realized from international diversification.

• A) Greater returns
• B) Smaller advantage
• C) Larger risk
• D) Bigger advantage
• E) None of the above

---

Definitions:

Long-Term Debt

Financial obligations of a company that are due more than one year in the future.

Current Assets

Assets owned by a company that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to determine investment worth.

Long-Term Liabilities

Financial obligations of a company that are due after more than one year.