Exports Arise Because

question 79

Multiple Choice

Exports arise because:

• A)the importing country has a comparative advantage in consuming a good
• B)the exporting country has a comparative advantage in producing a good
• C)the exporting country has a comparative advantage in consuming a good
• D)the importing country has a comparative advantage in producing a good

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Definitions:

Asset Allocation

The strategy of dividing investments across various asset categories, such as stocks, bonds, and cash, to optimize risk and return.

Treynor-Black Model

A portfolio optimization model that adjusts for risk and incorporates passive and active components.

Active Portfolio

An Active Portfolio is a collection of investments actively managed by fund managers or investors, regularly making buy, sell, and hold decisions in an attempt to outperform the benchmark index.

Abnormal Returns

Returns on a stock or portfolio that differ significantly from the expected return based on the market or certain benchmarks.