Joint Ventures

question 70

Multiple Choice

Joint ventures:

• A) Can not address complex markets
• B) Speed efforts to integrate into the foreign environment with less financial commitment than acquiring a foreign subsidiary
• C) Must be overseen by an outside board of directors
• D) Requires no disclosure of proprietary information

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Definitions:

Fama-French Model

A three-factor model developed for explaining asset prices and their returns, incorporating market risk, the size effect, and the value effect.

Benchmarking Performance

The process of comparing the performance of one's investments or company to a standard or a set of standards.

Rational Risk Factors

Factors based on economic theory that affect asset prices and can predict future investment returns, assuming that market participants act rationally.

Value Premium

The excess returns that investors may earn by holding stocks that are considered undervalued compared to their fundamentals.