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LOS c: Discuss the major issues confronting emerging market investors, including high correlations during times of crisis (contagion), non-normal return distributions, market efficiency, cost of capital, and corporate governance.
Q1. Which of the following best characterizes return patterns in emerging markets? The returns are:
A) not normally distributed and are not subject to structural breaks.
B) not normally distributed and are subject to structural breaks.
C) normally distributed and are subject to structural breaks.
Q2. Which of the following best characterizes the relationship between privatizations, returns, and the cost of capital in emerging countries? Privatizations result in:
A) lower expected returns and lower costs of capital.
B) higher expected returns and lower costs of capital.
C) lower expected returns and higher costs of capital.
Q3. Which of the following best characterizes the effect of liberalization on market microstructure in emerging markets? Liquidity:
A) increases and bid-ask spreads decrease.
B) increases and bid-ask spreads increase.
C) decreases and bid-ask spreads increase.
Q4. Which of the following are most closely and directly associated with lower costs of capital in emerging countries?
A) Market segmentation and government infrastructure.
B) Financial market liberalization and government infrastructure.
C) Financial market liberalization and privatizations. | 
发表于 2009-3-10 17:59
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