A Canadian Plans to Buy 100 Shares of This American

question 83

Multiple Choice

$\begin{array}{|l|r|r|rr} \hline& \text { Expected Return } & \begin{array}{r}\text { Standard Deviation of } \\\text { Return }\end{array} &{\text { Correlation }} \\& & & \text { Coefficients } \\& & & \text { X }& \text {Y} \\\hline \text { Canadian Stock X } & 6 \% & 9 \% & 1.00 & \\\hline \text { American Stock Y } & 4 \% & 8 \% & 0.80 & 1.00\\ \hline\end{array}$

A Canadian plans to buy 100 shares of this American stock for US $20 per share. The current spot rate is C$1.2977 = US $1. Suppose that this investor can sell the stock for US $30 a share a year later. The spot rate at the time of the sale is C$1.3029 = US $1.
-With 80% of the funds invested in domestic stock X and 20% in Y, what is the expected return of this portfolio?

• A) 5.6%
• B) 7.4%
• C) 3.8%
• D) 5.0%
• E) Undetermined

Analyze the benefits of fostering a culture of critical thinking in workplaces.

Evaluate arguments and reasoning within discussions and written work critically.

Identify failures of critical thinking and understand their consequences.

Discuss the importance of fair-mindedness and reasoning in critical thinking.

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Definitions:

Smallpox Immunization

The process of vaccinating an individual against smallpox, a serious and potentially deadly infectious disease, now eradicated thanks to global immunization efforts.

Smallpox Exposure

The act of coming into contact with the variola virus, which causes smallpox, a highly contagious and potentially deadly disease.

Government Agency

An organization operated by the government to enforce laws, regulate activities, or provide specific services to the public.

National Safety

Policies, regulations, and practices designed to protect citizens from accidents, harm, and health hazards within a country.