What Was the Crucial Factor Permitting Cotton Textile Production to Take

question 21

Multiple Choice

What was the crucial factor permitting cotton textile production to take off in New England between 1790 and 1815?

• A) The imposition of high tariff rates
• B) A lowering of import tariffs by Britain
• C) The blocking of trade with England through the Embargo and ?the War of 1812
• D) A relaxation of regulations restricting exports of machinery ?by Britain

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Definitions:

Risk Arbitrage

Speculation on perceived security mispricing, often in connection with merger and acquisition targets.

One-Factor APT

A financial model that describes the relationship between a security's returns and a single factor affecting all securities, used to predict performance.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically represented by government bonds of a stable country.

Diversified Portfolios

A strategy that mixes a wide variety of investments within a portfolio to minimize risks.