The Chinese stock markets trade shares issued by the same company for native Chinese and another share for foreign investors. What type of stock market would the Chinese markets be an examples of, a segmented or an integrated equity markets. Why?
What will be an ideal response?
Answer: Markets are integrated when assets of identical risk command the same expected return, irrespective of their domicile. Hence, in an integrated equity market, stocks are priced using global discount rates. In a segmented market, discount rates are country-specific. Segmentation usually arises through governmental interference with free capital markets. For example, if foreign investors are taxed or otherwise prohibited from holding the equities of a country, then that country's assets are not part of the world market portfolio, and that country is said to be segmented from international capital markets. It is also conceivable that other factors (such as poor corporate governance or liquidity) keep foreigners from investing in an equity market, causing it to be effectively segmented.
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Indicate whether the statement is true or false
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Find the probability that a randomly selected college student will take between 2 and 6 minutes to find a parking spot in the main parking lot. A) 0.1950 B) 0.4772 C) 0.4332 D) 0.6247
Following an oil spill in the Gulf of Mexico, the CEO of a petroleum company took the responsibility for correcting the environmental damages caused by his company. According to Mintzberg's typology, in doing so, he is performing the role of a
A. monitor. B. disseminator. C. liaison. D. disturbance handler. E. figurehead.
Answer the following statements true (T) or false (F)
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