Equity Investments 【 Reading 30】习题精选
country announces a liberalization program and the government is more credible then equity prices should: A)
| increase more resulting in lower expected returns. |
| B)
| decrease more resulting in lower expected returns. |
| C)
| increase more resulting in higher expected returns. |
|
If an emerging country announces a liberalization program and the government is more credible then stock prices should increase more. As prices rise in the newly liberalized market, the expected return for the market should decline. |