Question
the return for U.S. and foreign equity markets are often negatively correlated. The negative correlation indicates that for U.S. investors: -Foreign stocks are poor investments
the return for U.S. and foreign equity markets are often negatively correlated. The negative correlation indicates that for U.S. investors:
-Foreign stocks are poor investments
- Foreign stocks are the equivalent of U.S. stocks
-There are diversification benefits from holding foreign stocks
-There are no diversification benefits from holding foreign stocks.
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
