The parameters in a GARCH (1,1) model are: omega =0.000002, alpha = 0.04, and beta = 0.95 . Which of the following is the closest to the long run average volatility?
A. 1.1%
B. 1.2%
C. 1.3%
D. 1.4%
D
The long run average variance rate is 0.000002/(1−0.04−0.95)=0.0002 . The long run average volatility per day is the square root of this or 1.4%
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Selya and Reece are business partners in a small manufacturing firm that makes customized and ergonomically sound office furniture. Selya feels it is important to work directly with customers to design high-quality desks and chairs that precisely meet their needs, Reece is more concerned with finding ways to keep the company's costs as low as possible. In this partnership Selya tends to focus on _____ while Reece is more concerned with ______.
A) operations management B) separability C) effectiveness; efficiency D) economics
Which of the following statements is true about manufacturing companies over the past 20 years?
A) The grouping of machines into "manufacturing cells" has increased. B) Carrying large amounts of inventory is often less costly than carrying small amounts of inventory. C) They have moved from a "pull" approach to more of a "push" approach. D) The basic production process has changed very little over the past 20 years.
Mavis is injured in an automobile accident and sues the driver of the truck that struck her car. The court finds the driver liable and awards Mavis $10,000 to pay her medical expenses, $20,000 for her pain and suffering, and $5,000 for loss of income while she was unable to work. The court also finds the truck driver negligent and awards Mavis $50,000 in punitive damages. Which of the following statements concerning the receipt of these payments is/are correct? I.Mavis is not taxed on any of the payments because they relate to a personal physical injury.II.Mavis must include the loss of income payment in her gross income.III.The punitive damage payment is taxable.?
A. Only statement I is correct. B. Only statement III is correct. C. Statements II and III are correct. D. Only statement II is correct.
Ergonomic Corporation convenes its employees for its managers to announce (1) a new company-wide ethical code of conduct, (2) an ad campaign to publicize the new code, and (3) the discharge of employees who do not adhere to the code. One of the most effective ways to set a tone of ethical behavior within a business organization is
A. to create an ethical code of conduct. B. to discharge employees who do not create the appearance of impropriety. C. to post a marketing campaign online touting the firm's ethical tone. D. for management to direct employees to "do as we say, not as we do."