Stardust Inc

question 40

Multiple Choice

Stardust Inc. is expanding its global operations into South Fordland in spite of the terrorist activities in the country. As Stardust Inc. expands into South Fordland, it must deal with _____.

• A)political uncertainty
• B)economic uncertainty
• C)infrastructure regulation
• D)nationalistic equity
• E)strategy risk

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Definitions:

Wildcat Fund

An investment fund that takes higher risks in anticipation of higher rewards, often investing in unproven sectors or speculative ventures.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, relative to the volatility of those excess returns.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, traditionally associated with government bonds or bills.

Information Ratio

A ratio used to measure the return of an investment relative to the risk taken, comparing the asset's returns beyond the benchmark to the volatility of those returns.