If a Financial Portfolio Manager in the U

question 58

Multiple Choice

If a financial portfolio manager in the U.S. buys British company stocks in the London Stock Exchange, this would involve:

• A) A demand for British pounds in the foreign exchange market
• B) A supply of British pounds in the foreign exchange market
• C) No effect on the demand for British pounds in the foreign exchange market
• D) A demand for U.S. dollars in the foreign exchange market

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Definitions:

Florida Orange

Refers to oranges produced in Florida, significant for their contribution to the U.S. juice market and sensitivity to weather-related events impacting prices.

Negative Earnings Surprises

Occurs when a company reports lower earnings than analysts' estimates, leading to potential stock price decline.

Abnormal Return

A financial term describing the difference between a security's expected return and its actual return, often due to unexpected news or events.

Price Drift

A slow movement in the price of a security, which can be upwards or downwards, often in response to systemic factors.