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im having a hard time believeing the 1st one to be true does anyone have a cfai reference.......please provide

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question from CFAI

The first question asks "most of the time" so it is true



Edited 1 time(s). Last edit at Sunday, May 29, 2011 at 11:01AM by drk.

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True to both. (Deriv - mark the word -"does not spread beyound local region"

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False ( see Asia currency crisis ----->russia crisis ------------>LTCM)
True ( one of the criticism of emerging market investing)

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first one is false

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How could the first one be true? It could spread to neighboring emerging market although it may not spread to developed countries.

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true
true

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false

no

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True to both. The correlation is related to the volatility not the emerging market. There is a correlation between volatility between emerging and developed during times of crisis due to the volatility itself.

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Pure guesswork

1) True - based on contagion

2) False

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