Why is the variance of a portfolio of internationally diversified stocks likely to be lower than the variance of a portfolio of U.S. stocks?
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With international stocks, the investor can diversify away U.S.-specific sources of volatility (e.g. U.S.–specific business cycle movements, changes in U.S. monetary policy, changes in U.S. interest rates, etc.). Technically, the variance of an equally weighted portfolio converges to the average covariance between these stocks when the number of stocks gets very large. The average covariance among U.S. stocks is higher than the average covariance among a set of U.S. and international stocks.
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Which of the following statements is true of the operations of multichannel retailers?
A. Most retailers have a common organization to manage all channels. B. Integrating various channel operations does not pose a major problem. C. They need to maintain a consistent image across channels. D. Similar assortments are often suitable for various channels. E. Competition does not have a significant impact on pricing.
One major advantage of focus groups is that they may be directed at understanding a wide variety of issues such as reactions to a new food product, brand logo, or television ad
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The partial correlation coefficient is generally viewed as more important than the part correlation coefficient
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