--%>

Security returns

Security returns are found to be less correlated across various countries rather than within the country. Explain Why?

E

Expert

Verified

Security returns are less correlated since countries are different from each other related with the macroeconomic policies, industry structure, resource endowments, and have non-synchronous business cycles. Securities from same country are subjected to the same business cycle and macroeconomic policies, hence resulting in the high correlations among their returns.

   Related Questions in Financial Accounting

  • Q : Meaning of Goodwill Meaning of Goodwill

    Meaning of Goodwill: Goodwill puts the association at a good position due to which the organization is capable to earn huge profits without any additional efforts. Goodwill can’t be seen although felt. Thus goodwill is termed as an Intangible as

  • Q : Case study of a wind turbine for rural

    The goal of this long problem is to validate the turbine performance estimates in specific (XYZ) wind regimes, and estimate its cost.  Below is a list of tasks you will need to accomplish, but you are not limited to these if you want to do more:  

  • Q : Money how much money do i have to earn

    how much money do i have to earn monthly?

  • Q : Cash flows from operating activities A

    A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities

  • Q : Time draft Explain how does time draft

    Explain how does time draft become a banker’s acceptance?

  • Q : Hedgers and Speculators Explain hedgers

    Explain hedgers and speculators are two types of economic agents required for a derivatives market to function.

  • Q : Importance of international financial

    Explain the importance in studying the international financial management?

  • Q : Define Money fund Money fund: Money

    Money fund: Money fund is as well main instrument of the money market. This fund that can be employed for fulfilling the requirements of banks to repay the customers.

  • Q : Identification of Responsibility Centre

    Identification of Responsibility Centre: Profit centre has been taken as the responsibility centre. Profit centre is the one in which both the revenue and costs are accounted for. The difference between them is the profit so the managers for this cent

  • Q : Adjunct Account What do you mean by the

    What do you mean by the term Adjunct Account?