Q. Which of the following is true regarding the capital market development since the 1970s?

  • (A) The extent of intertemporal trade was larger than theory predicts.
  • (B) Onshore-offshore interest rate differentials were too large.
  • (C) The extent of the international portfolio diversification was smaller than theory predicts.
  • (D) The role of emerging markets declined over time.
✅ Correct Answer: (C) The extent of the international portfolio diversification was smaller than theory predicts.

Published by Ram Sharma ⭐ 193.88K Points at 04-Jun-2022 05:51 pm in Economic

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