Suppose that investors from a country have access to a large set of foreign stocks, and that foreign investors can also buy stocks in that country Which of the following statements is (are) correct (a) The single market CAPM, where the market portfolio is measured by the index of all stocks issued ...

a Is correct when it says the standard MBA ca ...

Suppose that investors from a country have access to a large set of foreign stocks, and that

Question:

Suppose that investors from a country have access to a large set of foreign and that foreign investors can also buy in that country. Which of the following statements is (are) correct?
(a) The single-market CAPM, where the market is measured by the index of all issued by local companies, does not hold.
(b) The single-market CAPM, where the market is measured by the index of all held by local investors, does not hold.
(c) The single-market CAPM, where the market is measured by the index of all held by local investors, is formally correct but not fit for practical use, because the correct index is not readily observable.
(d) The single-market CAPM, where the market measured by the index of all worldwide, is correct provided that there is a unified world market for all The single-market CAPM, where the market is measured by the index of all worldwide, is correct provided that there is no (real) exchange risk.
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...