There is a perception that in the last 10 years the growing integration of the global economy and the emergence of the global capital market have increased the correlation between different stock markets,increasing the benefits of international diversification.

Question

Quizplus · Accepted Answer

The increased correlation between stock markets due to global integration actually reduces the benefits of international diversification, as markets move more in tandem, offering less risk reduction.

There Is a Perception That in the Last 10 Years