Refer to the Data Above to Answer This Question

question 51

Multiple Choice

Refer to the data above to answer this question.Suppose that each country allocates 5 million of its population to the rice industry,the rest being employed in the beer industry.What is their (joint) total production?

• A)20 rice and 10 beer.
• B)48 rice and 24 beer.
• C)35 rice and 35 beer.
• D)21 rice and 21 beer.

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Definitions:

Systematic Component

The part of an investment’s return or risk that is attributable to broad market factors affecting all investments to some degree.

Single Factor Model

A financial model that describes the return on a security as a function of a single factor, typically the market return, plus security-specific variations.

Risk Premium

The extra return expected by an investor for holding a risky asset instead of a risk-free asset, serving as compensation for bearing additional risk.