The turnover ratio percentages for 36 equity markets of emerging markets for the five years beginning with 2002 were measured. Many of the small equity markets in each region (e.g., Peru, Venezuela, Sri Lanka, Slovak Republic, Croatia, and Zimbabwe) have relatively low turnover ratios,

Question

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A low turnover ratio typically indicates poor liquidity, meaning that there are not many buyers or sellers in the market. This can make it difficult for investors to trade securities and can result in price inefficiencies. Therefore, the small equity markets in each region with relatively low turnover ratios may be suffering from poor liquidity. The other choices (B and C) are not supported by the given information.

The Turnover Ratio Percentages for 36 Equity Markets of Emerging