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Security returns are found to be less correlated across countries than within a country. Why can this be?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter16: Country Risk Analysis

Section: Chapter Questions

Problem 8QA

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Balance of Payments

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Security returns are found to be less correlated across countries than within a country.
Why can this be?

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