Ch19 - International Investing 1. US securities represent _...

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International Investing 1. US securities represent ______ of the world market for equities. a. less than 25% b. more than 2/3 c. between 30% and 60% d. a consistent 50% 2. _____ has the largest number of listed corporations among developed markets. a. The United States b. Japan c. The United Kingdom
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d. Switzerland 3. _______ has the highest per capita GNP among developed countries. a. The United States b. Japan c. The United Kingdom d. Switzerland 4. ________ has the highest ratio of market capitalization to GDP among developed countries. a. The United States b. Japan
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c. The United Kingdom d. Switzerland 5. _______ is commonly considered an emerging market. a. Korea b. Israel c. Portugal d. all of the above 6. WEBS are _______. a. country specific b.
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mutual funds c. identical to ADRs d. all of the above 7. ________ give you an investment in a single foreign company. a. WEBS b. MSCIs c. ADRs d. all of the above 8. ________ is not an EAFE country. a. Denmark
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b. Australia c. Japan d. Canada 9. International diversification comes _______. a. primarily from foreign stocks b. primarily from foreign currency c. primarily from political risk d. from foreign stocks and foreign currency about equally 10. The main reason for international investing is to _______.
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a. reduce volatility b. boost returns c. replicate the global market d. hedge currency fluctuations 11. Among the factors explaining the return on a stock, _______ factors are generally most important while _______ factors are generally least important. a. domestic, industrial b. domestic, currency c. world, industrial d. currency, domestic
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12. EAFE stands for _______. a. Equity And Foreign Exchange b. European, Australian, Far East c. European, Asian, Foreign Exchange d. European, American, Far East 13. __________ refers to the possibility of expropriation of assets, changes in tax policy and the possibility of restrictions on foreign exchange transactions. a. default risk b. foreign exchange risk c. market risk d.
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political risk 14. The __________ index is a widely used index of non-U.S. stocks. a. CBOE b. Dow Jones c. EAFE d. none of the above 15. The performance of an internationally diversified portfolio may be affected by __________. a. country selection b. currency selection c. stock selection
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all of the above 16. Developed countries are those with per-capita income of more than ___ in 2000. a. $5,000 b. $9,300 c. $15,000 d. $25,000 17. The approximate U.S. weight in the world equity index increased from __ in 1996 to __ in 2001. a. 60, 75
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This note was uploaded on 02/22/2012 for the course FINA 3480 taught by Professor Moore during the Spring '11 term at Toledo.

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Ch19 - International Investing 1. US securities represent _...

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