Which of the Following Reasons Best Explains U

question 109

Multiple Choice

Which of the following reasons best explains U.S.imports of crude oil from Saudi Arabia and diamonds from South Africa?

• A)Differences in resource endowments
• B)Economies of scale
• C)Differences in tastes
• D)Import tariffs
• E)Import quota

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Definitions:

Cumulative Normal Function

A statistical function that indicates the probability that a random observation that is drawn from a normal distribution falls within a certain range of values.

Sharpe Measure

A ratio used to evaluate the risk-adjusted return of an investment portfolio; it represents the excess return per unit of deviation in an investment.

Risk Adjusted Performance

An evaluation of an investment's return after accounting for the degree of risk that was taken to achieve it.

Portfolio

An assortment of financial assets including stocks, bonds, and commodities, as well as cash and near-cash items like mutual funds and ETFs.