-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are

question 103

Multiple Choice

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.The United States has a comparative advantage in producing

• A) food.
• B) clothing.
• C) food and clothing.
• D) neither good.

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Definitions:

Sharpe Measure

A ratio used to evaluate the risk-adjusted return of an investment portfolio; it represents the excess return per unit of deviation in an investment.

Risk Adjusted Performance

An evaluation of an investment's return after accounting for the degree of risk that was taken to achieve it.

Portfolio

An assortment of financial assets including stocks, bonds, and commodities, as well as cash and near-cash items like mutual funds and ETFs.

Sharpe Ratio

Reward-to-volatility ratio; ratio of excess return to portfolio standard deviation.