Is it warranted?
What will be an ideal response?
As just noted, the trouble inassuming a constant OAS in calculating interest-rate sensitivity measures is that the assumption cannot be justified or warranted on theoretical grounds.The OAS methodology provides a measure for relative valuation of MBS products that is vastly superior to some of the ad hoc measures that were historically used (and unfortunately still used) by portfolio managers. Those traditional measures fail to recognize the embedded options in these complex products. Nevertheless, using the OAS as a relative value measure has drawbacks. The first drawback is the prepayment model uncertainty. The second drawback is that in pricing MBS, there are differing OAS levels.
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________ is used to determine customer service levels
A) Inventory held B) Backlog/stockout quantity C) Workforce hired/laid off D) Machine capacity increase/decrease
You are a highly-respected, retail executive with a Fortune 500 company, and you have been asked to speak at the upcoming annual meeting of the Professionals in Retail Association. You have been asked to talk about changes taking place in retail and the keys to success in this new retailing environment. Which of the following statements about retail would you want to incorporate into your speech?
A. Retailers are no longer the critical link between producers and ultimate consumers because they no longer provide the environment for exchanges to occur between these parties. B. The key to success is to have a strong customer focus and provide good service, product quality, and innovation for your customers. C. New store formats have not been significantly impacted by technology. D. Retailers are finding that it is more profitable to limit their target markets to domestic markets primarily instead of pursuing global opportunities. E. Traditional retailing has only been marginally impacted by the Internet.
To find the total number of compounding periods, you multiply the number of years by the number of compounding periods. If it is weekly, multiply by what?
A) 52 B) 2 C) 4 D) 12 E) 365
"Impact of inflation; risk and return relationship; impact of long-term investing; and simple investment options are the best" can be described as:
A) reasons why people should not invest. B) the four rules of checking accounts. C) the four most important investing basics. D) the Investment and Savings Act of 2008. E) the core principles of budgeting.