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Question
WEBS differ from mutual funds in that:I. WEBS can be shorted.
II. WEBS trade continuously on the AMEX.
III. WEBS are passively managed.
A. II only
B. II and III only
C. I and III only
D. I, II, and III
Answer
This answer is hidden. It contains 2 characters.
Related questions
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Q:
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II. Large trade deficit
III. Large amount of total debt
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The yen-per-dollar spot rate is 104. The yen-per-dollar forward rate is 107. If the U.S. risk-free rate is 2.4%, what is the likely yen risk-free rate?
A. 1.24%
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The risk-free rate in the United States is 4%, and the risk-free rate in Japan is 1.2%. If the spot rate of yen to dollars is 105, what is the likely yen-per-dollar forward rate?
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B. 102
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Q:
Passive investors with well-diversified international portfolios _________.
A. can safely ignore all political risk in emerging markets
B. can expect very large diversification gains from their international investing
C. do not need to be concerned with hedging exposure to foreign currencies
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Q:
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A. default risk
B. foreign exchange risk
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Q:
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A. Equity and Foreign Exchange
B. Europe, Australasia, Far East
C. Europe, Asian, Foreign Exchange
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Q:
An investor would want to __________ to exploit an expected fall in interest rates.
A. sell S&P 500 Index futures
B. sell Treasury-bond futures
C. buy Treasury-bond futures
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Q:
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Q:
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Q:
The option smirk in the Black-Scholes option model indicates that __________.
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B. stock prices may fall by a larger amount than the model assumes
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Q:
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Q:
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Q:
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Q:
Which one of the following will increase the value of a put option?
A.
a decrease in the exercise price
B.
a decrease in time to expiration of the put
C.
an increase in the volatility of the underlying stock
D.
Q:
Consider the Sharpe and Treynor performance measures. When a pension fund is large and well diversified in total and it has many managers, the __________
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Q:
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Q:
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Q:
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A. daily limit
B. daily margin
C. maintenance margin
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Q:
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B. sellers of futures contracts only
C. both buyers and sellers of futures contracts
D. speculators only
Q:
Initial margin is usually set in the region of ________ of the total value of a futures contract.
A. 5%-15%
B. 10%-20%
C. 15%-25%
D. 20%-30%