According to the Agency Theory,who Are the Principals

question 57

Multiple Choice

According to the agency theory,who are the principals?

• A)Managers
• B)Customers
• C)Owners
• D)Vendors
• E)Employees

Calculate expected returns on international investments incorporating exchange rate predictions.

Understand the implications of exchange rate movements on international investment decisions.

Comprehend the structure and weighting concerns of international equity indexes like EAFE.

Recognize the principles of risk and return in international portfolios, including diversification benefits and exchange rate impacts.

---

Definitions:

Classical Economists

Economists from the 18th and 19th centuries who focused on the free market, advocating for limited government intervention.

Keynesian

Relating to the economic theories of John Maynard Keynes, advocating for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.

Classical

Pertains to the classical school of economic thought, focusing on free markets and the self-regulating nature of economies, emphasizing the roles of competition and supply and demand.

Monetarists

Monetarists are economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.