The Global Investment Strategy of Investing in Emerging Markets for Diversification

question 35

Multiple Choice

The global investment strategy of investing in emerging markets for diversification purposes assumes that the markets are

• A) highly correlated with home market securities
• B) highly segmented and relatively inefficient compared to the global securities markets
• C) integrated with the major global financial centers
• D) correlated in their home and foreign economic cycles

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Definitions:

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Payroll Tax

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Social Insurance Tax

Taxes imposed on employees and employers to fund public insurance programs, such as social security, health care, and unemployment benefits.

Social Security

Social Security is a government system that provides financial assistance to people with an inadequate or no income, primarily the elderly, disabled, and survivors.