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Homework answers / question archive / 1)Why advocates of strategic trade policy favor subsidies? (8 points) 5

1)Why advocates of strategic trade policy favor subsidies? (8 points) 5

Economics

1)Why advocates of strategic trade policy favor subsidies? (8 points) 5. Summarized the Management focus titled "Protecting U.S. Magnesium”. Must include all important information. (8 points) 6. State in brief with examples (when needed) the political arguments for government intervention in international trade. (8 points)

2)Consider a portfolio, P. invested in Stocks 1 and 2 with the following characteristics: • w: Weight in Stock 1 • Stock 1 : E(ru) = 15%, and 01 = = 11% • Stock 2: E(r2) = 8%, and 02 = 7% • Corr(r1, 12) = P Suppose p=0.2. For portfolio P with w = 0.3, what is the variance of the portfolio? (Use %2 as a unit. Answer to the second decimal place, e.g. 58.00.)

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