Regulators in Different Countries Have Proposed Various Regulations for Product

question 19

Multiple Choice

Regulators in different countries have proposed various regulations for product labeling.All of the following statements pertaining to such regulations are true except:

• A)mandatory health warnings on tobacco products are required in most countries.
• B)the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point.
• C)in 2008,the United States enacted a country-of-origin labeling (COOL)law.
• D)the use of terms "light" and "natural" are allowed on labels only in the United States.
• E)McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.

---

Definitions:

Total Abnormal Return

The sum of the differences between the expected return on a security, based on a model like the CAPM, and the actual return over a specific period.

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio can be measured.

Bonds

Financial instruments representing loans made by an investor to a borrower, typically corporate or governmental, which are expected to be paid back with interest.

Sharpe Measure

An indicator of the performance of an investment compared to a risk-free asset, adjusted for its risk, calculated as the difference in returns divided by the standard deviation of the investment.