25-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter25TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.SharesofseveralforeignfirmsaretradedintheU.S.marketsintheformofA.ADRs.B.ECUs.C.single-countryfunds.D.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.2.__________referstothepossibilityofexpropriationofassets,changesintaxpolicy,andthepossibilityofrestrictionsonforeignexchangetransactions.A.DefaultriskB.ForeignexchangeriskC.MarketriskD.PoliticalriskE.Noneoftheoptionsarecorrect.3.__________aremutualfundsthatinvestinonecountryonly.A.ADRsB.ECUsC.Single-countryfundsD.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.4.Theperformanceofaninternationally-diversifiedportfoliomaybeaffectedbyA.countryselection.B.currencyselection.C.stockselection.D.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.5.Overtheperiod2011-2016,mostcorrelationsbetweentheU.S.stockindexandstock-indexportfoliosofothercountrieswereA.negative.B.positivebutlessthan.9.C.approximatelyzero.D..9orabove.E.Noneoftheoptionsarecorrect.6.The__________indexisawidelyusedindexofnon-U.S.stocks.A.CBOEB.DowJonesC.EAFED.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.7.AccordingtoPRS,in2015,whichcountryhadthehighestcompositeriskratingonascaleof0(mostrisky)to100(leastrisky)?A.SwitzerlandB.CanadaC.GermanyD.U.S.8.WhichcountryhasthehighestinGDPpercapita?25-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.A.LuxembourgB.CanadaC.GermanyD.U.S.9.WhichcountryhasthelargeststockmarketcomparedtoGDP?A.JapanB.GermanyC.HongKongD.U.S.10.Usinglocalcurrencyreturns,theS&P500hasthehighestcorrelationwithA.Euronext.B.FTSE.C.Nikkei.D.Toronto.11.In2015,theU.S.equitymarketrepresented__________oftheworldequitymarket.A.19%B.60%C.43%D.41%12.Thestraightforwardgeneralizationoft...
