With Regard to the OIP

question 52

Multiple Choice

With regard to the OIP,

• A)the composition of the optimal international portfolio is identical for all investors,regardless of home country.
• B)the composition of the optimal international portfolio are varies depending upon the numeraire currency used to measure returns.
• C)the composition of the optimal international portfolio is identical for all investors,regardless of home country,if they hedge their risk with currency futures contracts.
• D)the composition of the optimal international portfolio are varies depending upon the numeraire currency used to measure returns,and the composition of the optimal international portfolio is identical for all investors (regardless of home country)if they hedge their risk with currency futures contracts.

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Definitions:

Variable Costing

A financial recording technique that factors in only direct materials, direct labor, and variable manufacturing overhead as part of the product's costing.

Total Gross Margin

The total amount of revenue a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.

Unit Product Cost

The total expense incurred to produce, manufacture, or acquire a product divided by the number of units.

Absorption Costing

An accounting technique that allocates all manufacturing costs to products, helping to capture the full cost of producing each item.