The Table Below Shows the Prices in Canada of One

question 30

Multiple Choice

The table below shows the prices in Canada of one kilogram of cheddar cheese from 3 different countries. Assume that all cheddar cheese is identical. TABLE 34- 1
-Refer to Table 34- 1. If Canada has a 40 percent tariff in place on the import of cheddar cheese, the price per kilogram of cheese from Canada, United Kingdom and United States respectively, is

• A)$14, $9.00 and $8.00.
• B)$14, $12.60 and $11.20.
• C)$10, $12.60 and $11.20.
• D)$10, $10 and $10.
• E)$10, $9.00 and $8.00.

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Definitions:

Investment Opportunity Set

The array of all possible investment combinations available to an investor considering both risk and return.

Global Minimum-Variance Portfolio

The Global Minimum-Variance Portfolio is an investment portfolio constructed to achieve the lowest possible level of risk (variance) for its expected return, using assets from around the world.

Perfectly Negatively Correlated

A relationship between two securities in which one's price moves in the opposite direction of the other's, resulting in a correlation coefficient of -1.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used in finance to quantify the risk of an investment.