In the aftermath of a worldwide stock-market crash, Country T claimed that the severity of the stock-market crash it experienced resulted from the accelerated process of denationalization many of its industries underwent shortly before the crash? Q-2: Which of the following if it could be carried out, would be most useful in an evaluation of Country T’s assessment of the causes of the severity of its stock-market crash?

A Calculating the average loss experienced by individual trades is country T during the crash.

B Using economic theory to predict the most likely date of the next crash in Country T.

C Comparing the total number of shares sold during the worst days of the crash in Country T to the total number of shares sold in Country just prior to the crash.

D Comparing the severity of the crash in country T to the severity of the crash in countries otherwise economically similar to Country T that have not experienced recent denationalization.

Solution

Correct Answer: Option D

Solution

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