--%>
Assignment Help - homework help

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 : Variants of basic interest rate and

    Discuss briefly some of the variants of the basic interest rate and currency swaps.

    		•
  • Q : Capitalization Method for Goodwill

    Capitalization Method: (Goodwill method): In this technique capitalized value of the firm is computed on the basis of normal rate of return. Difference between the capitalized value and real capital employed is termed as goodwill.

    		•
  • Q : What are Bad Debts What are Bad Debts

    What are Bad Debts and what are their influence on the value of debtor?

    		•
  • Q : Factors influencing real estate market

    What are the factors which influences real estate market?

    		•
  • Q : Canadian Outdooring Explain Canadian

    Explain Canadian Outdooring in brief ?

    		•
  • Q : Function of budgetary control play in

    Describe the function of budgetary control play in cost control? And also write down the requirements for its triumphant execution?

    		•
  • Q : What is Capital Capital : In easy word,

    Capital: In easy word, capital signifies the amount or asset that is invested in business by businessman or owner of business. Whenever the business is closed, after paying exterior creditors, balance amount will be his capital that he can attain.

    		•
  • Q : Direct loans-loan guarantees and credit

    Do you think that government of the country must assist the private business in conduction of the international trade through the direct loans, loan guarantees, and/or credit insurance?

    		•
  • Q : Exchange rate changes decreases risk of

    Would exchange rate changes always raise the risk of the foreign investment? Explain some of the condition under which exchange rate changes can actually decrease the risk of foreign investment.

    		•
  • Q : Case study of harvesting a tree

    Recently, a friend accused her neighbor of harvesting a tree (sapling of balsam fir, Abies balsamea) from her land without permission. Her neighbor claims that he bought it from a Christmas tree plantation (growing in a clearing down the road).  Your friend says

    		•