In deciding where to invest your money, you read that Italy looks like it's well positioned to capitalize on the opening of Central Europe, especially since many of the countries joined Italy in the European Union
But the U.K. is experiencing weak growth high interest rates, and high inflation. Which of the two countries would be more attractive to invest in? Explain.
Answer: Rational investors will already have factored these expectations into the prices of assets in these countries. As events diverge from the expected, stock prices will adjust to reflect the new expectations so that at any point in time the expected risk-adjusted return from investing in different countries and assets will be the same. And the fact that the risks noted in the question are likely to be uncorrelated with each other, especially the U.K. and Central Europe, should increase the diversification benefits from the investment in both the U.K. and the Central European nations.
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The enlargement of the EU has impacted marketing strategies in the Eurozone countries by:
A) making it difficult to export food products from one country to another. B) increasing the cost of production since the euro replaced local currency. C) shifting products from one market to another in the event of shortages. D) reduced tariffs and quotas for products imported from non-EU members. E) having less flexibility in the placement of factories.
In attribute sampling, the risk of incorrect rejection deals with which of the following?
a. Effectiveness. b. Efficiency. c. Reliability. d. Both A and B.
List the claims and defenses available to a holder in due course under the Revised Article 3 of the Uniform Commercial Code.
What will be an ideal response?
Which of the following deal with transaction legitimacy?
a. transaction authorization and validation b. access controls c. EDI audit trail d. all of the above