Is Political Risk Premium in Europe Too High?

Is Political Risk Premium in Europe Too High?

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video discusses the potential political risks in Europe, particularly in light of recent populist outcomes in elections. It examines how markets react to unexpected political events, such as Brexit and Trump's election, and the implications for political risk premiums. The role of the European Central Bank in managing these risks amid rising inflation and bond purchase adjustments is also explored. Finally, the video provides investment strategies for the European equity market, highlighting the economic backdrop and potential for growth.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways could the European Central Bank shield Europe from political risks?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the current spread of yields in Europe indicate about political risks?

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