Which of the Following Statements Is False

question 8

Multiple Choice

Which of the following statements is false?

• A) In some countries, especially in the developing world, all investors do not have equal access to financial securities.
• B) Firms may face differential access to markets if there is any kind of asymmetry with respect to information about them.
• C) In some cases, a country's risk-free securities are internationally integrated but markets for a specific firm's securities are not.
• D) When countries' capital markets are not integrated we call them disintegrated capital markets.

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Definitions:

Belief Perseverance

Belief perseverance is the psychological phenomenon wherein individuals maintain their beliefs despite contrary evidence.

Individualism

A theory in society that prioritizes individuals' freedom to act over the control of groups or the government.

Collectivism

A cultural orientation prioritizing the goals and well-being of the group over the individual, emphasizing interdependence, cooperation, and social harmony.

Fundamental Attribution Error

The tendency for observers to attribute other people's behavior to internal or dispositional factors and to downplay situational factors.