Which of the following is true when the tails of a future foreign currency distribution are compared with those of a lognormal distribution with the same mean and standard deviation?
A. The left tail and right tail are thinner
B. The left tail is thinner and the right tail is fatter
C. The right tail is thinner and the left tail is fatter
D. Both tails are fatter
D
Both tails of the foreign currency distribution are fatter. This leads to a U-shaped smile.
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After concept testing, a firm would engage in which stage in developing and marketing a new product?
A) idea screening B) marketing strategy development C) business analysis D) product development E) test marketing
Pride of Peers is a bakery chain that specializes in preparing homemade confectionaries. The company donates most of its earnings to rehabilitation centers for war victims and keeps just enough to buy raw materials. The primary goal of the company is to contribute to the rehabilitation of war victims. In this scenario, Pride of Peers would most likely be classified as a _____.
A. political organization B. paper organization C. nonprofit organization D. corporation
Financial guarantees
A) are insurance policies to back bond issues. B) are purchased by financially weaker security issuers. C) lower the risk of the bonds covered by the guarantee. D) do all of the above. E) do only A and B of the above.
Slingerland borrowed $8,000 on July 20, at 11% interest. If the loan was due on October 17, what was the amount of interest on the loan using the exact interest method?
A) $263.01 B) $273.06 C) $214.58 D) $285.20