Answer:
c. This increases only U.S. net capital outflow.
Explanation:
The net capitaloutflow is determinated by comparing the investemnt abroad with the investment of other countries in the national economy.
investment in foreing countries - investment from foreing countries.
In this case the US firm is investing abroad, therefore inceasing the net capital outflow of the US.
The Korea net capital outflow will decrease. because it is receiving investment.
Answer:
The systematic portion of the unexpected return is 1.180% and the unsystematic portion was 0.288%
Explanation:
E(R) = 0.034 + 1.18*(0.108 - 0.034) = 0.12132
R - E(R) = 0.136 - 0.12132 = 0.01468
RM - E(RM) = 0.118 - 0.108 = 0.01
[RM - E(RM)] * Beta = 0.01 * 1.18 = 0.0118 = 1.180%
[R - E(R)] - [RM - E(RM)] * Beta = 0.01468 * 0.0118 = 0.00288 = 0.288%
The answer is D) are on the "but side" of Wall Street.
Just read the text. I'm 100% sure. Text below.
