Which of the Following Statements Is Most CORRECT with Respect

question 19

Multiple Choice

Which of the following statements is most CORRECT with respect to international diversification?

• A)the gains from diversification may be diminished due to combined correlations accompanied by volatility in world markets
• B)world markets always seem to be most uncorrelated when volatility is present
• C)world markets have displayed relatively low and fixed correlations over the last five years
• D)global diversification produces gain even when world markets have correlations value near one.

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Definitions:

Low-context Cultures

Societies where communication is explicit, and understanding does not heavily rely on context, background, or non-verbal cues.

Written Word

The expression of ideas, thoughts, or information through the act of writing, as opposed to spoken communication.

Personal Pledges

Personal commitments or promises made by an individual.

Social Communication Model

A framework that describes the exchange of messages between individuals in a social context, including the methods and barriers to communication.