A Primary Consideration for an MNC in Investing in a Foreign

question 1

Multiple Choice

A primary consideration for an MNC in investing in a foreign country would be a decision based on:

• A)Corporate culture
• B)Business ethics
• C)Specific locale
• D)Operating norms

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Definitions:

Expected Return

This represents the mean of the probability distribution of possible returns for a security or portfolio.

Complete Portfolio

A complete portfolio represents a combination of risk-free assets and risky assets, designed to balance potential returns with the investor's risk tolerance.

Risk-Free Asset

An investment that is assumed to have no risk of financial loss, often represented by government bonds or treasury bills.

Risky Asset

An investment that holds a certain degree of risk, possibly leading to loss, such as stocks or commodities.