We Would Not Expect a Japanese Financial Asset and a U.S

question 30

Multiple Choice

We would not expect a Japanese financial asset and a U.S. financial asset with identical risk, liquidity, and information characteristics to have different expected returns because

• A)the U.S. and Japanese governments have pledged themselves to avoid this outcome.
• B)traders would buy the asset with the higher expected yield and sell the asset with the lower expected yield until the yields were brought into equality.
• C)traders would sell the asset with the higher expected yield and buy the asset with the lower expected yield until the yields were brought into equality.
• D)the exchange rate between the dollar and the yen would adjust automatically to eliminate any difference in yields.

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Definitions:

Impoverished Manager

A leadership style characterized by a lack of both management commitment to organizational goals and concern for the well-being or needs of employees.

Hersey-Blanchard

refers to the Situational Leadership Model developed by Paul Hersey and Kenneth Blanchard, which suggests that effective leadership adapts based on the maturity level of the followers.

Successful Leaders

Individuals characterized by their ability to guide, inspire, and bring out the best in those around them to achieve common goals.

Situational Leadership Model

A leadership theory suggesting that the most effective leadership style varies according to the situation, and that leaders adjust their styles based on the maturity level of their followers.