Answer: Local- content laws
Explanation: In simple words, these refers to the rules and regulation made by the government requiring foreign firms to use domestic resources if they want to operate in that economy.
In the given case, Thailand requires foreign companies selling milk products to use domestically produced milk for their production.
Hence from the above we can conclude that the economic risk involved is regarding to local content laws.
The link between Money Supply and Inflation. ... Increasing the money supply faster than the growth in real output will cause inflation. The reason is that there is more money chasing the same number of goods. Therefore, the increase in monetary demand causes firms to put up prices.
Answer:
23.56
Explanation:
Standard deviation of the first stock (σ1) = 20%
Standard deviation of the second stock (σ2) = 37%
The correlation coefficient between the returns (ρ) = 0.1.
Proportion invested in the first stock (W1) = 43%
Proportion invested in the second stock (W2) = 57%
The standard deviation of a two-stock portfolio's returns is given by
The standard deviation of this portfolio's returns IS 23.56%
