Consider the correlations (in U.S. dollars) of worldwide bond markets presented in Exhibit 9.5. Explain the reasons

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Consider the correlations (in U.S. dollars) of worldwide bond markets presented in Exhibit 9.5. Explain the reasons for the correlations observed between the United States and other countries, and indicate the motivations for diversifying a U.S. dollar bond portfolio into foreign-currency bonds.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Global Investments

ISBN: 978-0321527707

6th edition

Authors: Bruno Solnik, Dennis McLeavey

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