emerging markets

if emerging markets can recover quickly from crises, does it mean they will have poor long term returns ? (answer of an item set question from schweser practice exam)

this is pretty confusing… i am never sure how the question is worded. If the emerging market has already recovered, then the long-term returns will be less than when the emerging market was in the crises just because you are starting from a higher point, so you will have less return.

mrjabran Wrote: ------------------------------------------------------- > if emerging markets can recover quickly from > crises, does it mean they will have poor long term > returns ? (answer of an item set question from > schweser practice exam) The question was incorrect - if you read the answer, they directly contradict what the question says - pure error, forget about it and move on.

Errata: Practice Exams, Volume 1 Correction Page 116 at the end of statement 1 the last sentence should end with “…so long-term returns can be good” Posted: 2010-04-08