Question 7 Not yet answered Marked out of 1.00 Flag question Question 8 Not yet answered Marked out of 1.00 P Flag question Question 9 Not yet answered Marked out of 1.00 Flag question Question 10 Not yet answered Marked out of 1.00 Flag question Type "True" or "False." If you answer "False", then explain why the statement is false (1 line). If you answer "True" do NOT explain. Assume that a portfolio is 50% invested in U.S. stocks and 50% in Japan (a = 0. 5). Annualized expected returns are 7% and 7% for the USA and Japan, respectively. The standard deviation of US stocks and Japanese stock returns is 10% (identical) and but the correlation between the two is 0. From the point of view of an American investor, there are benefits from diversifying a portfolio internationally investing in Japan. Answer: An ETF Select one: O 1. limits the diversification potential of investors who hold it. O2. may be traded only in the primary market. O 3. is linked directly to the value of a composite index of futures contracts. O4. must be earned as a performance bonus within a corporation rather than purchased. O 5. tracks the performance of an index of share returns for a particular country or industry sector. Type "True" or "False." If you answer "False", then explain why the statement is false (1 line). If you answer "True" do NOT explain. "A company producing an undifferentiated product and competing with internationally diversified competitors will face a relatively high price elasticity of demand for its products and possess a relatively low degree of pricing flexibility." Answer: Type "True" or "False." If you answer "False", then explain why the statement is false (1 line). If you answer "True" do NOT explain. "Forward Contracts" and "Future Contracts" are exactly the same contract but the use of the wording "Forward Contracts" is more common in English speaking countries and the use of "Future Contracts" is more common in the EU