Problem

Correlations between Stock Markets. A colleague makes the following remark: “Global stock...

Correlations between Stock Markets. A colleague makes the following remark: “Global stock markets are quite homogenous. A Taiwanese semi-conductor firm is no different from a US firm in the same industry. Ditto for Swiss pharmaceuticals, Japanese auto firms, etc. What is the point of global diversification?” Respond to this position using data as appropriate to make your points.

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Solutions For Problems in Chapter 15