An analyst can determine if a country's equity market is likely to be segmented from the global equity market if the ß derived by regressing returns in the foreign market with returns on the global equity market is significantly different from one.

Question

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An ß value that is significantly different from one indicates that the country's equity market is not closely correlated with the global equity market and may be segmented.

An Analyst Can Determine If a Country's Equity Market Is