Foreign Securities Are Generally Considered to Be More Risky Than

question 18

Essay

Foreign securities are generally considered to be more risky than domestic securities.Given this assumption,explain how adding foreign securities into a domestic portfolio can affect the Markowitz efficient portfolios.

Comprehend the concept and impact of globalization on societies.

Analyze the transformation of societies from traditional to modern and then to postmodern.

Identify the phenomenon of cultural leveling and its effects on global culture.

Understand the digital divide and its implications for society.

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Definitions:

Antirust Legislation

Laws and regulations designed to promote fair competition for the benefit of consumers by preventing monopolies, cartels, and other forms of market dominance that can lead to price fixing and reduced innovation.

Market Power

The ability of a company or entity to control prices or exclude competition within a particular market.

Price-Fixing Agreement

An arrangement between competitors to set prices at a certain level, rather than allowing them to be determined by natural market forces, often considered illegal.

Per Se Violation

An act that is considered illegal in itself, without needing to prove harm or malicious intent, usually in antitrust law.