Nuisance Tariffs

question 42

Multiple Choice

Nuisance tariffs

• A) annoy importers with red tape, administrative paperwork, and added expense.
• B) are an historical anomaly.
• C) are found in developed nations more than in developing nations.
• D) have no point other than to indicate that tariffs regulations change quickly.

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Definitions:

Alpha

A measure of investment performance that indicates how an asset performs relative to a benchmark.

Overpriced

Describes an asset or security that is believed to be trading at a price higher than its intrinsic value.

Underpriced

A term used to describe a security or any financial instrument that is selling for a price believed to be below its true intrinsic value.

Well-diversified Portfolio

An investment portfolio that spreads risk by holding a wide variety of assets, potentially across different asset classes, sectors, and geographies.