Index put options are used to provide protection against the value of the portfolio falling below a certain level. Which of the following is true as the beta of the portfolio increases?
A. The cost of hedging increases
B. The required options have a higher strike price
C. The number of options required increases
D. All of the above
D
As beta increases A, B, and C are all true.
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The center of gravity technique does not take into consideration the:
A) total volume of product any given site receives. B) location of any given site. C) number of locations that must be served. D) balance of supply and demand.
Identify a characteristic of high-performing teams.
A. They have a low "average of social sensitivity" in assessing and responding to the verbal and nonverbal cues of teammates. B. They have members with specialty skills rather than interpersonal skills. C. They are rewarded for team accomplishments in addition to individual recognition. D. They have limited communication mechanisms to maintain secrecy.
Collection of biological specimens in the form of hair, blood, sweat, or saliva to test for the presence of illegal chemical substances is what form of preemployment hiring tool?
A. ability testing B. drug testing C. background check D. biodata tool
Rinaldo owns 20% of Mahoney Company, a partnership. Rinaldo's adjusted basis in the partnership is $32,000 at the beginning of the current year. During the current year, Rinaldo receives a $10,000 cash distribution from the partnership. Mahoney Company reports a $200,000 operating loss for the current year. Which of the following statements is/are correct? I. Rinaldo's maximum loss deduction is
limited to $22,000. II. If Rinaldo is a material participant in Mahoney, he can deduct a $40,000 loss. a. Only statement I is correct. b. Only statement II is correct. c. Both statements are correct. d. Neither statement is correct.