What is meant by an interest-rate model?

What will be an ideal response?


By an interest rate model, we mean a model that incorporates statistical properties of interest-rate movements. These properties are (1) drift, (2) volatility, and (3) mean reversion. The commonly used mathematical tool for describing the movement of interest rates that can incorporate these properties is stochastic differential equations (SDEs).

Business

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Answer the following statements true (T) or false (F)

1. Obsolete technology and outdated facilities are examples of organizational threats.  2. Guthrie Community College has done a SWOT analysis and discovered that the number of college-bound high-school juniors in its state has grown by nearly 20% in the past few years. This is a strength for Guthrie.  3. Organizational threats are the environmental factors that hinder an organization's ability to achieve a competitive advantage.  4. Forecasting is a strategic-planning tool used to make long-term strategy.

Business

Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method?

A. Cash received from the sale of a building. B. Credit sales. C. Cash received from the sale of treasury stock. D. Depreciation expense. E. Cash collections from customers.

Business

Supervisors expect employees to accept change as the norm and be open to upgrading their skills

Indicate whether the statement is true or false

Business

Architecture, signage, and design of work areas are examples of which of the following unobtrusive measures?

a. historical data b. databases c. official documents d. physical environment

Business