Which risk item below is not related to changing economic conditions?
A)
Financial risk
B)
Business cycle risk
C)
Inflation risk
D)
Interest-rate risk
A
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All available-for-sale investments are reported as long-term assets on the balance sheet
Indicate whether the statement is true or false
You should use the conceptual formula of variance instead of the computational formula when…
a. you're working with a population b. you’re working with a sample c. you’re working with discrete data d. none of the above
The office manager for an ophthalmologist wants to estimate the average time that the doctor spends with each patient in order to better schedule appointments. A random sample of 49 is taken and the sample mean is 20.3 minutes. Assume that the office
manager knows from past experience that the standard deviation is 14 minutes. She finds that a 95% confidence interval is between 18.3 and 22.3 minutes. What is the point estimate of the population mean? What is the confidence coefficient?
Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the largest percentage increase in price?
A. A 1-year bond with a 15% coupon. B. A 3-year bond with a 10% coupon. C. A 10-year zero coupon bond. D. A 10-year bond with a 10% coupon. E. An 8-year bond with a 9% coupon.