Emerging Market Equities as an asset class - Mock AM 48

CFA Level III
#1

The answer says that the statement “Emerging market equities should not be considered a separate asset class from global equities” is incorrect, with the following explanation:

“Emerging markets equities should be considered a distinct asset class as they differ from other equities in terms of diversification potential, informational efficiency, corporate governance, taxation, and currency convertibility”

Wouldn’t the asset classes “global equity” and “emerging market equities” overlap? Wouldn’t a better definition of asset classes be “Emerging market equities” and “developed market equities”?

#2

True but global equities is usually used to classify developed markets only. For example look at the most well-known global equity index, the MSCI World. It says World but in reality it only contains developed markets.

#3

Oh alright, thanks for the clarification, MB!