|
LOS a: Discuss financial and economic market integration and explain the theoretical impact on pricing and expected returns when a segmented market evolves into an integrated market.
Q1. Which of the following best describes the pricing of emerging market equities? If an emerging country announces a liberalization program, equity prices will:
A) rise and the cost of capital will increase.
B) rise and the cost of capital will decline.
C) fall and the cost of capital will decline.
Q2. Which of the following best describes the pricing of emerging market equities? If the emerging market transitions from segmented to integrated, the country’s equities will be priced according to its:
A) covariance risk and its expected returns will be lower.
B) variance risk and its expected returns will be lower.
C) covariance risk and its expected returns will be higher.
Q3. Which of the following best describes the pricing of emerging market equities? If an emerging 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. | 
发表于 2009-3-10 17:54
| 
