The gamma of a delta-neutral portfolio is -400. Other things equal, what is the impact of a jump of $2 in the price of the underlying asset? A. A gain of $1,600 B. A loss of $1,600 C. A gain of $800 D. A loss of $800

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The gamma of a delta-neutral portfolio is -400. Other things equal,
what is the impact of a jump of $2 in the price of the underlying asset?
A. A The gamma of a delta-neutral portfolio is -400. Other things equal,
what is the impact of a jump of $2 in the price of the underlying asset?
A. A gain of $1,600
B. A loss of $1,600
C. A gain of $800
D. A loss of $800gain of $1,600
B. A loss of $1,600
C. A gain of $800
D. A loss of $800

 
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Business Policy Game Exercise

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Business Policy Game ExerciseInformation on any newly released product model, when available, will be given in thecompany’s Operating Information Report.Select one:TrueFalseBefore a new product model officially goes on sale, any unsold units of the old model will beautomatically sold to a liquidation firm at below book value.Select one:TrueFalsefollowing union contracts, all companies will pay second-shift workers at 1.2 times the normalhourly rate.Select one:TrueFalseIf a company needs to get emergency loans, it will weaken the public’s confidence in thecompany, thereby reducing demand for its product.Select one:TrueFalseMost companies are headquartered in Merica 1 but have a sales office and an active sales force inthree different market areas.Select one:TrueFalseA company may draw against a line of credit (up to $2,000,000) by floating a 3-month bank loan.Interest will be charged at the short-term rate available during the quarter the loan is issued.Select one:TrueFalseIf a plant is closed down, its equipment will be sold for 80 percent of book value.Select one:TrueFalseStockouts can demoralize production and operations employees and decrease their productivity.Select one:TrueFalseWith space additions, an existing plant can be expanded in size to house more than 12 production

 
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Which of the following statements is FALSE regarding the beta coefficient? a. It is a measure of systematic risk. b. Beta measure the sensitivity of an asset’s returns to the market portfolio returns. c. According to CAPM, a stock with the beta of zero is expected to earn the same rate as the market portfolio. d. The risk premium of an asset will increase if the beta of that asset increases.

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Which of the following statements is FALSE regarding the beta coefficient?

a. It is a measure of systematic risk.

b. Beta measure the sensitivity of an asset’s returns to the market portfolio returns.

c. According to CAPM, a stock with the beta of zero is expected to earn the same rate as the market portfolio.

d. The risk premium of an asset will increase if the beta of that asset increases.

 
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Which of the following statements regarding Capital Asset Pricing Model is True? Select one: a. The diversifiable risk is compensated by a higher expected return. b. The portion of an asset’s risk attributable to factors that affect all firms is called systematic risk. c. A portfolio that consists of any two stocks can eliminate all diversifiable risk. d. The systematic risk only affects small capitalization stock.

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Which of the following statements regarding Capital Asset Pricing Model is True?

Select one:

a. The diversifiable risk is compensated by a higher expected return.

b. The portion of an asset’s risk attributable to factors that affect all firms is called systematic risk.

c. A portfolio that consists of any two stocks can eliminate all diversifiable risk.

d. The systematic risk only affects small capitalization stock.

 
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Question Assume that next year, we can have three possible states of world with the following probabilities of occuring: 20%, 45%, and 35%. The returns of an asset in each state are 18%, 5%, and -8%. What is the expected return for this asset? Select one: a. 3.05% b. 5.00% c. 8.65% d. 15.00%

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Question
Assume that next year, we can have three possible states of world
with the following probabilities of occuring: 20%, 45%, and 35%. The returns of an asset in each state are 18%, 5%, and -8%. What is the expected return for this asset?
Select one:
a. 3.05%
b. 5.00%
c. 8.65%
d. 15.00%

 
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Typically, employers compete with each other in the labor market to get and to retain the best possible workers. Explain how such competition might prevent the unemployment rate from ever being close to zero.

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Typically, employers compete with each other in the labor market to get and to

retain the best possible workers. Explain how such competition might prevent the

unemployment rate from ever being close to zero.

 
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HOW CAN I FIND THE ANNUAL REPORT OF FACEBOOK AT THE FIRST IPO ISSUING ?

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HOW CAN I FIND THE ANNUAL REPORT OF FACEBOOK AT THE FIRST IPO ISSUING ?

 
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Jane bought furniture from Rip Off City, signing a contract agreeing

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 Jane bought furniture from Rip Off City, signing a contract agreeing

to make payments over the next year. Rip Off City repossessed the furniture on the basis that Jane missed a payment. Jane sues Rip Off City, alleging that the contract was unconscionable and thus unenforceable. Which correctly state(s) the role of the judge and jury in this case?
a)The judge will decide whether Jane missed a payment.
b)The jury will decide whether this jurisdiction has laws against unconscionable contracts.
c)The judge will instruct the jury on the law regarding unconscionable contracts.
d)The jury will decide whether the terms of the contract are unconscionable.
e)C and D

 
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Question 1. You are borrowing $30,000 to buy a car. The terms of the loan call for monthly payments for 5 years at 4.8 percent interest. What is the amount of each payment?

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Question

1.     You are borrowing $30,000 to buy a car. The terms of the loan

call for monthly payments for 5 years at 4.8 percent interest. What is the amount of each payment?

 
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You are paying an effective annual rate of 12.68 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on this account?

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You are paying an effective annual rate of 12.68 percent on your credit

card. The interest is compounded monthly. What is the annual percentage rate on this account?

 
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