Security returns
Security returns are found to be less correlated across various countries rather than within the country. Explain Why?
Expert
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.
what is accounting equation? explain accounting equation and explain its importance?
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