1) The initial impetus for globalized financial markets came from the governments of major countries deregulating their domestic financial markets, allowing more foreign participation in them. T or F.
2) Secuurity returns are substantially less correlated--------------------countries than---------------------countries.
3) Investors diversify their portfolio holdings to:
a. increase their returns
b. help more borrowers in financial markets
c. help low income countries
d. mitigate risk
4) -------------------------risk refers to the risk that remains even after investors fully diversify their portfolio holdings.
5) The Sharpe Performance Measure:
a. provides a risk-adjusted performance measure for national stock markets
b. represents the excess return above and beyond the "risk-free" interest rate per standard deviation.
c. equals the "mean of returns" minus the the risk free interest rate divided by the standard deviation of returns.
d. all of the above