Which of the following is true about segmented capital markets?
A) Exhibit different bond and equity prices in different geographic areas for identical assets in terms of risk and maturity.
B) Exhibit the same bond and equity prices in different geographic areas for identical assets in terms of risk and maturity.
C) Exhibit different bond and equity prices in the same geographic areas for identical assets in terms of risk and maturity.
D) Exhibit different bond prices but the same equity prices in different geographic areas for identical assets in terms of risk and maturity.
E) None of the above

Question

Quizplus · Accepted Answer

Segmented capital markets refer to situations where identical assets in terms of risk and maturity may have different prices in different geographic areas. This is because of factors such as differences in local market conditions, supply and demand, and investor behavior. Therefore, option A is the correct answer as it correctly describes the nature of segmented capital markets.

Which of the Following Is True About Segmented Capital Markets