Which of the Following Is TRUE Regarding the "Food Versus

question 45

Multiple Choice

Which of the following is TRUE regarding the "food versus fuel" debate?

• A) Global biofuel supply and demand is expected to grow more than sixfold, from 12 billion to 83 billion gallons, over the next two decades.
• B) Some commodities like corn or vegetable oil can be used as food or to make biofuels.
• C) In the United States a larger percentage of the corn harvest is now made into ethanol than was the case a decade ago.
• D) Nonfood crops can also be used to produce biofuel.
• E) All of these answer are true.

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Definitions:

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment portfolio, calculated by subtracting the risk-free rate of return from the portfolio's return and dividing by the portfolio's standard deviation of returns.

Risk-free Rate

The theoretical rate of return of an investment with zero risk, often represented by Treasury bills.

Borrowing Rate

The interest rate or cost that a borrower pays to secure funds from a lender.

Expected Value

The calculated average result of all possible outcomes of a particular investment or decision, considering both the probability and the impact of each outcome.