In 1997,the stock markets of several Asian countries,including South Korea,Malaysia,Indonesia,and Thailand,lost over 50 percent of their value in response to the Asian financial crisis,while at the same time the S&P 500 increased in value by over 20 percent.This indicates that:

Question

Quizplus · Accepted Answer

The fact that the stock markets in Asian countries experienced a significant decline while the S&P 500 increased in value suggests that there is a low correlation between the movement of stock markets in different countries. This indicates that international diversification can potentially reduce the risks of global capital movement, as investors can obtain exposure to different markets that are not highly correlated with each other. Therefore, option A is the best choice. Options B, C, and D are not supported by the given information.

In 1997,the Stock Markets of Several Asian Countries,including South Korea,Malaysia,Indonesia,and