What is the relationship, in general, between volatility and trigger prices, assuming constant costs?
What will be an ideal response?
Higher volatility increases the optimal trigger price.
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The Sherman Act:
A. does not provide criminal penalties for violations of its provisions. B. makes contracts in restraint of trade and monopolization illegal. C. was specifically designed to attack tie-in, exclusive dealing, and requirements contracts. D. does not give the federal courts any injunctive powers.
The two stocks in your portfolio, X and Y, have independent returns, so the correlation between them, rXY is zero. Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y. Both stocks have an expected return of 15%, betas of 1.6, and standard deviations of 30%. Which of the following statements best describes the characteristics of your 2-stock portfolio?
A. Your portfolio has a standard deviation less than 30%, and its beta is greater than 1.6. B. Your portfolio has a beta equal to 1.6, and its expected return is 15%. C. Your portfolio has a beta greater than 1.6, and its expected return is greater than 15%. D. Your portfolio has a standard deviation greater than 30% and a beta equal to 1.6. E. Your portfolio has a standard deviation of 30%, and its expected return is 15%.
A takeover cannot be challenged on the ground that it would result in a substantial increase in the acquiring corporation's marker power.
Answer the following statement true (T) or false (F)
Define the three measures of central tendency described in this chapter. Explain how to determine each for a given dataset.
What will be an ideal response?