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NEW QUESTION: 1
Two countries have flexible e change rate systems and an active trading relationship. If incomes <List A> in country 1, everything else being equal, then the currency of country 1 will tend to <List B> relative to the currency of country 2.
A. Option C
B. Option B
C. Option D
D. Option A
Answer: A
Explanation:
If incomes in country 1 rise, consumers in country 1 will increase their imports from country
2. The resulting increase in the supply of currency 1 will result in a tendency for it to depreciate relative to the currency of country 2.
NEW QUESTION: 2
switch\のRADIUS会計箱がシスコISEサーバーで見られていないと、ユーザーは報告しますどの命令が、switch\の構成で失敗しているユーザーです?。
A. ネットワークがデフォルトと考えているaaaは、グループ半径を開始・停止します。
B. 資源がデフォルトと考えているaaaは、グループ半径を開始・停止します。
C. 半径-サーバーvsaは、会計を送ります
D. 役員がデフォルトと考えているaaaは、グループ半径を開始・停止します。
Answer: C
NEW QUESTION: 3
Assume that a U.S. investor can invest in two asset classes: Domestic and Foreign Bonds. The data in the following table are risk and return data calculated in U.S. Dollar terms. Given this data, which of the following choices is most likely the correct risk/return combination for a portfolio weighted 50 percent in domestic bonds and 50 percent in foreign bonds?
A. Risk of 10.00%, Return of 13.50%.
B. Risk of 7.50%, Return of 8.25%.
C. Risk of 8.00%, Return of 10.90%.
D. Risk of 6.00%, Return of 9.25%.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
According to portfolio theory and the principle of diversification, we would expect that adding more of a security that has a low correlation to an existing portfolio would lower the portfolio risk. Since the correlation between foreign and domestic bonds is low at 0.50, we would expect the risk of the portfolio to decline below 8.00% when we replace domestic bonds with foreign bonds. This narrows the possible correct responses to the two with risk less than 8.00%. In addition, we would expect the return to increase, as the return on foreign bonds is higher than that on domestic bonds, butremain slightly lower than that for the portfolio that is 20% domestic and 80% foreign. We can calculate the estimated portfolio return as the weighted average of returns for the individual asset classes. (0.50 * 12) + (0.50 * 6.5) = 9.25%
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