The Theory of Portfolio Choice Suggests That the Most Important

question 116

Multiple Choice

The theory of portfolio choice suggests that the most important factor affecting the demand for domestic and foreign assets is

• A)the level of trade and capital flows.
• B)the expected return on these assets relative to one another.
• C)the liquidity of these assets relative to one another.
• D)the riskiness of these assets relative to one another.

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Definitions:

Direct Materials

Raw materials that are directly traced and integral to the manufacturing of a finished product.

Spending Variance

The difference between the budgeted or standard cost of something and the actual amount spent, often analyzed in budgeting and cost management.

Budgeting Formulas

Mathematical expressions used in the preparation of budgets to estimate future costs, revenues, and resources requirements.

Revenue Variance

The gap between what was expected in revenue and what was actually earned.