投资学第7版Test Bank答案25

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1、Chapter25InternationalDiversificationMultipleChoiceQuestions1.SharesofseveralforeignfirmsaretradedintheU.S.marketsintheformofA)ADRsB)ECUsC)single-countryfundsD)alloftheaboveE)noneoftheaboveAnswer:ADifficulty:EasyRationale:AmericanDepositoryReceipts(ADRs)allowU.S.invest

2、orstoinvestinforeignstocksviatransactionsontheU.S.stockexchanges.2.__________referstothepossibilityofexpropriationofassets,changesintaxpolicy,andthepossibilityofrestrictionsonforeignexchangetransactions.A)defaultriskB)foreignexchangeriskC)marketriskD)politicalriskE)non

3、eoftheaboveAnswer:DDifficulty:EasyRationale:Alloftheabovefactorsarepoliticalinnature,andthusareexamplesofpoliticalrisk.3.__________aremutualfundsthatinvestinonecountryonly.A)ADRsB)ECUsC)single-countryfundsD)alloftheaboveE)noneoftheaboveAnswer:CDifficulty:EasyRationale:

4、Mutualfundsthatinvestinthestocksofonecountryonlyarecalledsingle-countryfunds.650Chapter25InternationalDiversification4.TheperformanceofaninternationallydiversifiedportfoliomaybeaffectedbyA)countryselectionB)currencyselectionC)stockselectionD)alloftheaboveE)noneoftheabo

5、veAnswer:DDifficulty:EasyRationale:Alloftheabovefactorsmayaffecttheperformanceofaninternationalportfolio.5.Overtheperiod2001-2005,mostcorrelationsbetweentheU.S.stockindexandstock-indexportfoliosofothercountrieswereA)negativeB)positivebutlessthan.9C)approximatelyzeroD).

6、9oraboveE)noneoftheaboveAnswer:BDifficulty:ModerateRationale:Correlationcoefficientsweretypicallybelow.9,whilecorrelationsbetweenwell-diversifiedU.S.marketportfoliosweretypicallyabove.9.SeeTable25.10.6.The__________indexisawidelyusedindexofnon-U.S.stocks.A)CBOEB)DowJon

7、esC)EAFED)alloftheaboveE)noneoftheaboveAnswer:CDifficulty:EasyRationale:TheEurope,Australia,FarEast(EAFE)indexcomputedbyMorganStanleyisawidelyusedindexofnon-U.S.stocks.650Chapter25InternationalDiversification7.The__________equitymarkethadthehighestaveragelocalcurrencyr

8、eturnbetween2001and2005.A)RussianB)NorwegianC)U.K.D)U.S.E)noneoftheaboveAnswer:ADifficulty:ModerateRationale:SeeTable