Which of the Following Is Not True Regarding the Efficient

question 35

Multiple Choice

Which of the following is not true regarding the efficient frontier considered by MNCs

• A) There is exactly one point on the efficient frontier that is optimal for every MNC, regardless of its degree of risk aversion.
• B) The efficient frontier for international projects will probably lie to the left of the efficient frontier for domestic projects.
• C) Each point on the efficient frontier represents a portfolio of projects as opposed to an individual project.
• D) A and C are false.
• E) All of the above are true.

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when managing the other's money or property, often found in trustee-beneficiary relationships.

Duty Of Loyalty

An agent must subordinate his personal concerns by (1) avoiding conflicts of interest with the principal and (2) not disclosing confidential information received from the principal.

Joint And Several

Legal terminology indicating that all parties involved can be collectively or individually responsible for the full amount of liability.

Issue Negotiable Instruments

The act of creating financial documents, such as checks or promissory notes, that are transferable from one party to another in exchange for value.