Which of the following statements regarding risk factors in estimating the required rate of return for foreign securities is TRUE?
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A) |
Country risk arises from expected economic and political events. |
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B) |
Countries with large or active capital markets offer significant liquidity risk. |
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C) |
All of these choices are correct. |
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D) |
Firms in different countries assume significantly different financial risk. |
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Your answer: D was correct!
Country risk arises from unexpected not expected economic and political events. Countries with small or inactive capital markets offer liquidity risk, not countries with large and active capital markets. | 
发表于 2006-4-27 14:56
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