Reading 15_Equity Market Valuation_Practice Problems_Q12&16
The answer for Q12 states that “A higher correlation of the US equity market with international equity markets would increase the risk of the US equity market”
The answer for Q16 states that “bottom-up approach can be effective in anticipating cyclical turning points”
Could anyone explain why it is the case for each of the question? If possible, pls give your reference from the readings. Thanks.