Emerging Market Volatility

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The volatility of emerging markets could increase risk and lower return for the following reasons:
1. They could be hurt more by a slow down in global trade and finance.
2. Latin economies are prone to financial crisis, which could lower the value of their currency and lower the return to domestic companies.
3. Hostile governments could nationalize important industries, which hurt return on investments. … "Emerging Market Volatility" has a significant impact, so an analyst should put more weight into it. "Emerging Market Volatility" will have a long-term negative impact on this entity, which subtracts from the entity's value.