Wars Are More Likely to Occur Between Two Countries When

question 18

Multiple Choice

Wars are more likely to occur between two countries when:

• A)one of the countries is extremely powerful.
• B)the costs of war for both countries involved are large.
• C)the commitment to refrain from launching a challenge in the future is less credible.
• D)both countries possess nuclear weapons.
• E)one country is led by a member of the military.

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Definitions:

Leader

In a financial context, a company, stock, or security that outperforms its peers or the market, often used to indicate trends.

EAFE Index

An equity index that represents the stock performance of developed markets outside of the U.S. and Canada.

Weighting

The process of assigning different importance or values to certain elements in calculations, such as the components of a stock index or risk factors.

Internationally-Diversified Portfolio

An investment portfolio that includes assets from various countries to spread risk and enhance potential returns.