____ Is the Form of International Business Involvement in Which

question 77

Multiple Choice

____ is the form of international business involvement in which two or more firms have an equity position in an operation.

• A) A joint venture
• B) Direct investment
• C) A maquiladoras arrangement
• D) A strategic alliance
• E) International brokering

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Definitions:

Rational Security Pricing

The concept that the market prices of securities reflect all available information and are valued accordingly in an efficient way.

Constant-growth Dividend-discount Model

A method for valuing a stock by assuming that dividends grow at a constant rate indefinitely, used to estimate the stock's price based on future dividend payments.

Multifactor CAPM

Generalization of the basic CAPM that accounts for extra-market hedging demands.

APT

The Arbitrage Pricing Theory, a multifactor model used to determine asset returns based on the relationship between a financial asset's expected return and its risks.