Since the 1980s and 1990s, segmentation in global financial markets has been reduced. As a result of this, the correlation among securities markets has increased, thereby reducing, but not eliminating, the benefits of international portfolio diversification.

Question

Quizplus · Accepted Answer

This statement is true as the reduction of segmentation in global financial markets has led to increased correlation among securities markets which in turn reduces the benefits of international portfolio diversification.

Since the 1980s and 1990s, Segmentation in Global Financial Markets