Your video-game addicted nephew tells you that the Nintendo Wii is much better than the Microsoft X-Box
To take advantage of this information, you decide to build a two asset portfolio by buying shares in Nintendo and selling shares short in Microsoft. For your long position you buy 1700 shares of Nintendo at a price of $40 per share. For the short position, you sell 1000 shares in Microsoft at a price of $35 per share. What is the portfolio weight for your short position in Microsoft?
A) -1.06
B) -0.94
C) 0
D) 0.34
E) 0.50
A
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Which of the following statements is true about stepwise discriminant analysis?
A) The predictors are entered sequentially based on their ability to discriminate between groups. B) The predictor with the highest F ratio is the first to be selected for inclusion in the discriminant function, if it meets certain significance and tolerance criteria. C) Each predictor selected is tested for retention based on its association with the other predictors selected. D) All of the above statements are true.
The valuation issue deals with how the components of a transaction should be categorized
Indicate whether the statement is true or false
A production process produces 3% defective parts. A sample of five parts from the production process is selected. What is the probability that the sample contains exactly two defective parts?
A. 0.9918 B. 0.0082 C. 0.0003 D. 0.9997
Unless otherwise stated, the franchisor is liable for the torts of its franchisee
Indicate whether the statement is true or false