Q1. From the discussion of BRIC country prospects, which of the following best represents the conclusion drawn about their attractiveness as an investment? BRIC country stocks are: A) an attractive addition to a portfolio even though their currencies are expected to depreciate. B) an attractive addition to a portfolio because their stronger economic growth may result in higher stock returns. C) not an attractive addition to a portfolio because their risk does not justify their return.
Q2. Which of the following best characterizes the future investment environment in BRIC countries? BRIC country stock markets will be characterized by currency: A) depreciation and increased market capitalization. B) depreciation and decreased market capitalization. C) appreciation and increased market capitalization.
Q3. From the discussion of BRIC country prospects, which of the following best represents the forecast regarding their attractiveness as an investment? BRIC country stocks are: A) an attractive investment in part because higher currency values will strengthen the return from them. B) an attractive investment in part because developed country “baby boomers” will turn to them as alternative investments. C) not an attractive investment in part because high inflation will detract from their returns.
Q4. Which of the following projections best characterizes BRIC country economies in 2050? A) Increased stock market capitalization and GDP less than in the G6. B) Decreased stock market capitalization and GDP greater than in the G6. C) Increased stock market capitalization and GDP greater than in the G6.
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