A Study Examining the Performance of Numerous Assets from the United

question 16

Multiple Choice

A study examining the performance of numerous assets from the United States and around the world confirms that

• A) riskier assets with higher standard deviations experienced lower returns.
• B) riskier assets with lower standard deviations experienced higher returns.
• C) beta did a better job of explaining the returns than standard deviation.
• D) U.S. equities are highly correlated with world government bonds and with the commodities index.
• E) most assets (including common stocks) have positive correlations with inflation.

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Definitions:

International Trade

The exchange of goods, services, and capital across international borders or territories, which involves understanding and negotiating differing laws and tariffs.

World Trade Organization

An international organization designed to supervise and liberalize world trade, facilitating trade agreements and resolving disputes among its members.

International Business Ethics

Guidelines and practices regarding moral and ethical issues that arise in the international business environment, including fair trade, labor rights, and environmental sustainability.

Domestic Ethical Issues

Ethical challenges and dilemmas that arise within the context of one's own country, often related to business practices, governance, and social responsibility.