--%>
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 : Historical Cost of Fixed Assets What

    What are the Historical Cost of Fixed Assets?

    		•
  • Q : Find the expected dividend for each of

    Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it.

    Q : Define Purchase return Describe the

    Describe the term Purchase return with suitable example?

    		•
  • Q : Free-riding firms without tradable

    Explain how do firms with no tradable assets get free-ride from the firms whose securities are internationally tradable?

    		•
  • Q : International and financial management

    Explain, how international financial management is different from the domestic financial management?

    		•
  • Q : Explain Gross margin Explain Gross

    Explain Gross margin with their appropriate formulas?

    		•
  • Q : Bankruptcy A legal process that allows

    A legal process that allows a debtor, either a person or a business, to redundant some or all of the debt. The normal process involves selling asset and using the proceeds to pay off creditors in an order and/or in an amount determined by a judge. Some types of bankru

    		•
  • Q : Average Profit Method in goodwill

    Average Profit Method: (Goodwill method): The profit earned by an organization throughout previous accounting periods on an average basis is termed as average profit. Goodwill is computed on the basis of average profit due to prospect expectations of

    		•
  • Q : Investment approach of Warren Buffet

    Investment approach of Warren Buffet: According to Benjamin Graham, the father of securities analysis, value investment was the only form of investment which means that purchasing a stock at less than its intrinsic

    		•
  • Q : Explain the term Goodwill Explain the

    Explain the term Goodwill with espect to intangible asset?

    		•