In 2002, 24 stock markets had concentration ratios of 40 percent or more, 16 had 50 percent or more, and 6 had 60 percent or more. By comparison, in 2006, 27 stock markets had concentration ratios of 40 percent or more, 21 had 50 percent or more, and 11 had 60 percent or more. Thus, one must conclude

Question

Quizplus · Accepted Answer

The passage states that the concentration ratios, which measure the degree of market dominance by a few companies, have been increasing in the stock markets. Therefore, there are fewer equity investment opportunities for investors in those markets. This suggests that the number of equity investment opportunities in emerging stock markets in developing countries has not been improving in recent years. Option A is incorrect because the passage does not provide any evidence for or against the improvement of equity investment opportunities in major stock markets in developed countries. Option B is also incorrect because the passage does not mention anything about emerging stock markets in developing countries improving or not. Therefore, the correct answer is C.

In 2002, 24 Stock Markets Had Concentration Ratios of 40