Which of the following statements is NOT true of the VIX?
A) It is calculated based on prices of call and put options of the S&P 500.
B) Investors who want to hedge against stock market volatility can sell VIX options.
C) A VIX of 10 indicates investors expect the S&P 500 to fluctuate by 10% at an annual rate over the next 30 days.
D) The VIX is a measure of fear in the stock market.
B
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The most important developments that reduced banks' income advantages include
A) the increase in off-balance sheet activities. B) the growth of securitization. C) the elimination of Regulation Q ceilings. D) the competition from money market mutual funds.
Explain how a specific tax equal to the marginal harm of pollution can increase or decrease total welfare in a monopoly market
What will be an ideal response?
The standard deviation of the error terms in an estimated regression equation is known as:
a. coefficient of determination b. correlation coefficient c. Durbin-Watson statistic d. standard error of the estimate e. none of the above
The fundamental reason to study economics is to study
a. how choices are made. b. how production is determined. c. how countries trade with each other. d. how finances are determined.