Erb, Harvey, and Viskanta ["Political Risk, Financial Risk and Economic

Erb, Harvey, and Viskanta ["Political Risk, Financial Risk and Economic Risk," Financial Analysts Journal, 1996] found which of the following?

A) A decrease in the country risk of an emerging market tends to be followed by a fall in equity share prices.
B) Emerging markets with high country risk tend to have more volatile returns than markets with low country risk.
C) Emerging markets with high country risk tend to have higher betas than markets with low country risk.
D) Financial market liberalizations tend to increase local firms' cost of capital.
E) Financial market liberalizations tend to decrease the correlation of emerging markets with the rest of the world.