When a Firm from Another Country Has an Equity (Or

question 45

Multiple Choice

When a firm from another country has an equity (or ownership) position in a separate company,it is engaging in

• A)An international cooperative alliance.
• B)A turnkey operation.
• C)A contract manufacturer.
• D)FDI.

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Definitions:

Returns

The profit or loss derived from an investment over a particular period, usually expressed as a percentage.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment by dividing the difference between the investment's return and the risk-free rate by the standard deviation of the investment's returns.

Benchmark

A standard or reference by which the performance of a security, manager, or investment portfolio can be measured.