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If emerging capital markets are efficient, then explain why they often fail to track business cycles (e.g. predictions that emerging capital markets will fall during

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If emerging capital markets are efficient, then explain why they often fail to track business cycles (e.g. predictions that emerging capital markets will fall during a recession are often wrong). In addition, use standard portfolio theory to explain why investors should not limit their exposure to emerging capital markets merely due to a fear of large capital losses on so-called speculative investments. (2 page limit) (15 points)

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