Use This Figure for the Questions That Follow

question 77

Multiple Choice

Use this figure for the questions that follow.

-Which of the following countries is NOT a member of the North American Free Trade Agreement?

• A) Cuba
• B) United States
• C) Canada
• D) Mexico
• E) This is a trick question they are ALL members of NAFTA.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

CAPM

Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the market.

APT Model

Arbitrage Pricing Theory Model; a financial theory that estimates the returns on assets based on their exposure to various risk factors.

One Factor

In finance, refers to models or analyses that consider only a single variable or risk factor in their calculations.