Q&A Hero

Q: In a particular year, Aggie Mutual Fund earned a return of 15% by making the following investments in the following asset classes: The return on a bogey portfolio was 10%, calculated as follows: The total excess return on the Aggie managed portfolio was A. 1%. B. 3%. C. 4%. D. 5%.

Q: In a particular year, Razorback Mutual Fund earned a return of 1% by making the following investments in asset classes: The return on a bogey portfolio was 2%, calculated from the following information. The contribution of selection within markets to the Razorback Fund's total excess return was A. -1.80%. B. -1.00%. C. 0.80%. D. 1.00%.

Q: In a particular year, Razorback Mutual Fund earned a return of 1% by making the following investments in asset classes: The return on a bogey portfolio was 2%, calculated from the following information. The contribution of asset allocation across markets to the Razorback Fund's total excess return was A. -1.80%. B. -1.00%. C. 0.80%. D. 1.00%.

Q: In a particular year, Razorback Mutual Fund earned a return of 1% by making the following investments in asset classes: The return on a bogey portfolio was 2%, calculated from the following information. The total excess return on the Razorback Fund's managed portfolio was A. -1.80%. B. -1.00%. C. 0.80%. D. 1.00%.

Q: The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: The risk-free return during the sample period was 6%. Calculate the information ratio for Long Horn Stock Fund. A. 1.33 B. 4.00 C. 8.67 D. 31.43 E. 37.14

Q: The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: The risk-free return during the sample period was 6%. Calculate the Jensen measure of performance evaluation for Long Horn Stock Fund. A. 1.33% B. 4.00% C. 8.67% D. 31.43% E. 37.14%

Q: The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: The risk-free return during the sample period was 6%. What is the Treynor measure of performance evaluation for Long Horn Stock Fund? A. 1.33% B. 4.00% C. 8.67% D. 31.43% E. 37.14%

Q: The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio: The risk-free return during the sample period was 6%. What is the Sharpe measure of performance evaluation for Long Horn Stock Fund? A. 1.33% B. 4.00% C. 8.67% D. 31.43% E. 37.14%

Q: The following data are available relating to the performance of Wildcat Fund and the market portfolio: The risk-free return during the sample period was 7%. Calculate Jensen's measure of performance for Wildcat Fund. A. 1.00% B. 8.80% C. 44.00% D. 50.00%

Q: The following data are available relating to the performance of Wildcat Fund and the market portfolio: The risk-free return during the sample period was 7%. Calculate Treynor's measure of performance for Wildcat Fund. A. 1.00% B. 8.80% C. 44.00% D. 50.00%

Q: The following data are available relating to the performance of Wildcat Fund and the market portfolio: The risk-free return during the sample period was 7%. Calculate Sharpe's measure of performance for Wildcat Fund. A. 1.00% B. 8.80% C. 44.00% D. 50.00%

Q: The following data are available relating to the performance of Wildcat Fund and the market portfolio: The risk-free return during the sample period was 7%. What is the information ratio measure of performance evaluation for Wildcat Fund? A. 1.00% B. 8.80% C. 44.00% D. 50.00%

Q: Studies of style analysis have found that ________ of fund returns can be explained by asset allocation alone. A. between 50% and 70% B. less than 10% C. between 40 and 50% D. between 75% and 90% E. over 90%

Q: If an investor has a portfolio that has constant proportions in T-bills and the market portfolio, the portfolio's characteristic line will plot as a line with ___________. If the investor can time bull markets, the characteristic line will plot as a line with ___________. A. a positive slope; a negative slope B. a negative slope; a positive slope C. a constant slope; a negative slope D. a negative slope; a constant slope E. a constant slope; a positive slope

Q: The following data are available relating to the performance of Seminole Fund and the market portfolio: The risk-free return during the sample period was 6%. Calculate the M2 measure for the Seminole Fund. A. 4.0% B. 20.0% C. 2.86% D. 0.8% E. 40.0%

Q: The following data are available relating to the performance of Seminole Fund and the market portfolio: The risk-free return during the sample period was 6%. If you wanted to evaluate the Seminole Fund using the M2 measure, what percent of the adjusted portfolio would need to be invested in T-Bills? A. -36% (borrow) B. 50% C. 8% D. 36% E. 27%

Q: The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: The risk-free return during the sample period was 4%. Calculate Jensen's measure of performance for Monarch Stock Fund. A. 1.00% B. 2.80% C. 44.00% D. 50.00%

Q: The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: The risk-free return during the sample period was 4%. Calculate Treynor's measure of performance for Monarch Stock Fund. A. 10.40% B. 8.80% C. 44.00% D. 50.00%

Q: The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: The risk-free return during the sample period was 4%. Calculate Sharpe's measure of performance for Monarch Stock Fund. A. 1% B. 46% C. 44% D. 50% E. None of the options are correct.

Q: The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: The risk-free return during the sample period was 4%. What is the information ratio measure of performance evaluation for Monarch Stock Fund? A. 1.00% B. 280.00% C. 44.00% D. 50.00% E. None of the options are correct.

Q: The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: The risk-free return during the sample period was 3%. Calculate the information ratio for Sooner Stock Fund. A. 1.53 B. 1.30 C. 8.67 D. 31.43 E. 37.14

Q: The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: The risk-free return during the sample period was 3%. Calculate the Jensen measure of performance evaluation for Sooner Stock Fund. A. 2.6% B. 4.00% C. 8.67% D. 31.43% E. 37.14%

Q: The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: The risk-free return during the sample period was 3%. What is the Treynor measure of performance evaluation for Sooner Stock Fund? A. 1.33% B. 4.00% C. 8.67% D. 9.44% E. 37.14%

Q: The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: The risk-free return during the sample period was 3%. What is the Sharpe measure of performance evaluation for Sooner Stock Fund? A. 1.33% B. 4.00% C. 8.67% D. 38.6% E. 37.14%

Q: Suppose you own two stocks, A and B. In year 1, stock A earns a 2% return and stock B earns a 9% return. In year 2, stock A earns an 18% return and stock B earns an 11% return. Which stock has the higher geometric average return? A. Stock A B. Stock B C. The two stocks have the same geometric average return. D. At least three periods are needed to calculate the geometric average return.

Q: Suppose you own two stocks, A and B. In year 1, stock A earns a 2% return and stock B earns a 9% return. In year 2, stock A earns an 18% return and stock B earns an 11% return. __________ has the higher arithmetic average return. A. Stock A B. Stock B C. The two stocks have the same arithmetic average return. D. At least three periods are needed to calculate the arithmetic average return.

Q: Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $50. At the end of year 1, you receive a $1 dividend and buy one more share for $72. At the end of year 2, you receive total dividends of $2 (i.e., $1 for each share) and sell the shares for $67.20 each. The dollar-weighted return on your investment is A. 10.00%. B. 8.78%. C. 19.71%. D. 20.36%.

Q: Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $50. At the end of year 1, you receive a $1 dividend and buy one more share for $72. At the end of year 2, you receive total dividends of $2 (i.e., $1 for each share) and sell the shares for $67.20 each. The time-weighted return on your investment is A. 10.0%. B. 8.7%. C. 19.7%. D. 17.6%.

Q: Suppose you purchase one share of the stock of Volatile Engineering Corporation at the beginning of year 1 for $36. At the end of year 1, you receive a $2 dividend and buy one more share for $30. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share) and sell the shares for $36.45 each. The dollar-weighted return on your investment is A. -1.75%. B. 4.08%. C. 8.53%. D. 8.00%. E. 12.35%.

Q: Suppose you purchase one share of the stock of Volatile Engineering Corporation at the beginning of year 1 for $36. At the end of year 1, you receive a $2 dividend and buy one more share for $30. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share) and sell the shares for $36.45 each. The time-weighted return on your investment is A. -1.75%. B. 4.08%. C. 6.74%. D. 11.46%. E. 12.35%.

Q: You want to evaluate three mutual funds using the Jensen measure for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 18%. The average returns, standard deviations, and betas for the three funds are given below. The fund with the highest Jensen measure is A. Fund A. B. Fund B. C. Fund C. D. Funds A and B (tied for highest). E. Funds A and C (tied for highest).

Q: You want to evaluate three mutual funds using the Treynor measure for performance evaluation. The risk-free return during the sample period is 6%. The average returns, standard deviations, and betas for the three funds are given below, in addition to information regarding the S&P 500 Index. The fund with the highest Treynor measure is A. Fund A. B. Fund B. C. Fund C. D. Funds A and B (tied for highest). E. Funds A and C (tied for highest).

Q: You want to evaluate three mutual funds using the Sharpe measure for performance evaluation. The risk-free return during the sample period is 5%. The average returns, standard deviations, and betas for the three funds are given below, as are the data for the S&P 500 Index. The investment with the highest Sharpe measure is A. Fund A. B. Fund B. C. Fund C. D. the index. E. Funds A and C (tied for highest).

Q: You want to evaluate three mutual funds using the Sharpe measure for performance evaluation. The risk-free return during the sample period is 4%. The average returns, standard deviations, and betas for the three funds are given below, as are the data for the S&P 500 Index. The fund with the highest Sharpe measure is A. Fund A. B. Fund B. C. Fund C. D. Funds A and B (tied for highest). E. Funds A and C (tied for highest).

Q: You want to evaluate three mutual funds using the Sharpe measure for performance evaluation. The risk-free return during the sample period is 6%. The average returns, standard deviations, and betas for the three funds are given below, as are the data for the S&P 500 Index. The fund with the highest Sharpe measure is A. Fund A. B. Fund B. C. Fund C. D. Funds A and B (tied for highest). E. Funds A and C (tied for highest).

Q: You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 19%. The average returns, residual standard deviations, and betas for the three funds are given below. The fund with the highest information ratio measure is A. Fund A. B. Fund B. C. Fund C. D. Funds A and B (tied for highest). E. Funds A and C (tied for highest).

Q: Suppose you buy 100 shares of Abolishing Dividend Corporation at the beginning of year 1 for $80. Abolishing Dividend Corporation pays no dividends. The stock price at the end of year 1 is $100, $120 at the end of year 2, and $150 at the end of year 3. The stock price declines to $100 at the end of year 4, and you sell your 100 shares. For the four years, your geometric average return is A. 0.0%. B. 1.0%. C. 5.7%. D. 9.2%. E. 34.5%.

Q: Suppose a particular investment earns an arithmetic return of 10% in year 1, 20% in year 2, and 30% in year 3. The geometric average return for the period will be A. greater than the arithmetic average return. B. equal to the arithmetic average return. C. less than the arithmetic average return. D. equal to the market return. E. It cannot be determind from the information given.

Q: Suppose the risk-free return is 6%. The beta of a managed portfolio is 1.5, the alpha is 3%, and the average return is 18%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as A. 12%. B. 14%. C. 15%. D. 16%.

Q: Suppose the risk-free return is 3%. The beta of a managed portfolio is 1.75, the alpha is 0%, and the average return is 16%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as A. 12.3%. B. 10.4%. C. 15.1%. D. 16.7%.

Q: Suppose the risk-free return is 4%. The beta of a managed portfolio is 1.2, the alpha is 1%, and the average return is 14%. Based on Jensen's measure of portfolio performance, you would calculate the return on the market portfolio as A. 11.5%. B. 14%. C. 15%. D. 16%.

Q: Suppose you purchase 100 shares of GM stock at the beginning of year 1 and purchase another 100 shares at the end of year 1. You sell all 200 shares at the end of year 2. Assume that the price of GM stock is $50 at the beginning of year 1, $55 at the end of year 1, and $65 at the end of year 2. Assume no dividends were paid on GM stock. Your dollar-weighted return on the stock will be __________ your time-weighted return on the stock. A. higher than B. the same as C. less than D. exactly proportional to E. More information is necessary to answer this question.

Q: If covered interest arbitrage opportunities exist, A. interest rate parity does not hold. B. interest rate parity holds. C. arbitragers will be able to make risk-free profits. D. interest rate parity does not hold, and arbitragers will be able to make risk-free profits. E. interest rate parity holds, and arbitragers will be able to make risk-free profits.

Q: If covered interest arbitrage opportunities do not exist, A. interest rate parity does not hold. B. interest rate parity holds. C. arbitragers will be able to make risk-free profits. D. interest rate parity does not hold, and arbitragers will be able to make risk-free profits. E. interest rate parity holds, and arbitragers will be able to make risk-free profits.

Q: If interest rate parity does not hold, A. covered interest arbitrage opportunities will exist. B. covered interest arbitrage opportunities will not exist. C. arbitragers will be able to make risk-free profits. D. covered interest arbitrage opportunities will exist, and arbitragers will be able to make risk-free profits. E. covered interest arbitrage opportunities will not exist, and arbitragers will be able to make risk-free profits. If interest rate parity holds, covered interest arbitrage opportunities will not exist.

Q: If interest rate parity holds, A. covered interest arbitrage opportunities will exist. B. covered interest arbitrage opportunities will not exist. C. arbitragers will be able to make risk-free profits. D. covered interest arbitrage opportunities will exist, and arbitragers will be able to make risk-free profits. E. covered interest arbitrage opportunities will not exist, and arbitragers will be able to make risk-free profits. If interest rate parity holds, covered interest arbitrage opportunities will not exist.

Q: The most common short-term interest rate used in the swap market is A. the U.S. discount rate. B. the U.S. prime rate. C. the U.S. fed funds rate. D. LIBOR. E. None of the options are correct.

Q: A hedge ratio can be computed as A. profit derived from one futures position for a given change in the exchange rate divided by the change in value of the unprotected position for the same exchange rate. B. the change in value of the unprotected position for a given change in the exchange rate divided by the profit . derived from one futures position for the same exchange rate. C. profit derived from one futures position for a given change in the exchange rate plus the change in value of the unprotected position for the same exchange rate. D. the change in value of the unprotected position for a given change in the exchange rate plus by the profit derived from one futures position for the same exchange rate.

Q: Covered interest arbitrage A. ensures that currency futures prices are set correctly. B. ensures that commodity futures prices are set correctly. C. ensures that interest rate futures prices are set correctly. D. ensures that currency futures prices and commodity futures prices are set correctly. E. None of the options are correct.

Q: You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month. How many contracts should you buy or sell to hedge your position? Allow fractions of contracts in your answer. A. Sell 3.477 B. Buy 3.477 C. Sell 4.236 D. Buy 4.236 E. Sell 11.235

Q: You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month. For a 75-point drop in the S&P 500, by how much does the futures position change? A. $200,000 B. $50,000 C. $250,000 D. $500,000 E. $18,750

Q: You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month. What is the dollar value of your expected loss? A. $142,900 B. $65,200 C. $85,700 D. $30,000 E. $64,200

Q: You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month. If the anticipated market value materializes, what will be your expected loss on the portfolio? A. 7.58% B. 6.52% C. 15.43% D. 8.57% E. 6.42%

Q: Suppose that the risk-free rates in the United States and in the United Kingdom are 6% and 4%, respectively. The spot exchange rate between the dollar and the pound is $1.60/BP. What should the futures price of the pound for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs. A. $1.60/BP B. $1.70/BP C. $1.66/BP D. $1.63/BP E. $1.57/BP

Q: Suppose that the risk-free rates in the United States and in Canada are 5% and 3%, respectively. The spot exchange rate between the dollar and the Canadian dollar (C$) is $0.80/C$. What should the futures price of the C$ for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs. A. $1.00/C$ B. $0.82/C$ C. $0.88/C$ D. $0.78/C$ E. $1.22/C$

Q: Suppose that the risk-free rates in the United States and in Canada are 3% and 5%, respectively. The spot exchange rate between the dollar and the Canadian dollar (C$) is $0.80/C$. What should the futures price of the C$ for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs. A. $1.00/C$ B. $1.70/C$ C. $0.88/C$ D. $0.78/C$ E. $1.22/C$

Q: If you took a short position in three S&P 500 futures contracts at a price of 900 and closed the position when the index futures was 885, you incurred A. a gain of $11,250. B. a loss of $11,250. C. a loss of $8,000. D. a gain of $8,000. E. None of the options are correct.

Q: If you sold an S&P 500 Index futures contract at a price of 950 and closed your position when the index futures was 947, you incurred A. a loss of $1,500. B. a gain of $1,500. C. a loss of $750. D. a gain of $750. E. None of the options are correct.

Q: You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month. How many contracts should you buy or sell to hedge your position? Allow fractions of contracts in your answer. A. sell 1.714 B. buy 1.714 C. sell 4.236 D. buy 4.236 E. sell 11.235

Q: You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month. For a 200-point drop in the S&P 500, by how much does the value of the futures position change? A. $200,000 B. $50,000 C. $250,000 D. $500,000 E. $100,000

Q: You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month. What is the dollar value of your expected loss? A. $142,900 B. $16,670 C. $85,700 D. $30,000 E. $64,200

Q: You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think the market may fall over the next month. If the anticipated market value materializes, what will be your expected loss on the portfolio? A. 14.29% B. 16.67% C. 15.43% D. 8.57% E. 6.42%

Q: Hedging one commodity by using a futures contract on another commodity is called A. surrogate hedging. B. cross hedging. C. alternative hedging. D. correlative hedging. E. proxy hedging.

Q: In the equation Profits = a + b ($/ exchange rate), b is a measure of A. the firm's beta when measured in terms of the foreign currency. B. the ratio of the firm's beta in terms of dollars to the firm's beta in terms of pounds. C. the sensitivity of profits to the exchange rate. D. the sensitivity of the exchange rate to profits. E. the frequency with which the exchange rate changes.

Q: The value of a futures contract for storable commodities can be determined by the _______, and the model __________ consistent with parity relationships. A. CAPM; will be B. CAPM; will not be C. APT; will not be D. APT; will be E. CAPM and APT; will be

Q: Which two indices had the highest correlation between them during the 2008-2012 period? A. S&P and DJIA; the correlation was 0.979 B. S&P and Russell 2000; the correlation was 0.948 C. DJIA and Russell 2000; the correlation was 0.908 D. S&P and NASDAQ 100; the correlation was 0.928 E. NASDAQ 100 and DJIA; the correlation was 0.876

Q: Which two indices had the lowest correlation between them during the 2008-2012 period? A. S&P and DJIA; the correlation was 0.979 B. S&P and NASDAQ 100; the correlation was 0.928 C. DJIA and Russell 2000; the correlation was 0.908 D. S&P and Russell 2000; the correlation was 0.948 E. NASDAQ 100 and DJIA; the correlation was 0.876

Q: One reason swaps are desirable is that A. they are free of credit risk. B. they have no transactions costs. C. they increase interest rate volatility. D. they increase interest rate risk. E. they offer participants easy ways to restructure their balance sheets.

Q: Arbitrage proofs in futures market pricing relationships A. rely on the CAPM. B. demonstrate how investors can exploit misalignments. C. incorporate transactions costs. D. All of the options are correct. E. None of the options are correct.

Q: Commodity futures pricing A. must be related to spot prices. B. includes cost of carry. C. converges to spot prices at maturity. D. All of the options are correct. E. None of the options.

Q: Trading in stock index futures A. now exceeds buying and selling of shares in most markets. B. reduces transactions costs as compared to trading in stocks. C. increases leverage as compared to trading in stocks. D. generally results in faster execution than trading in stocks. E. All of the options are correct.

Q: Credit risk in the swap market A. is extensive. B. is limited to the difference between the values of the fixed rate and floating rate obligations. C. is equal to the total value of the payments that the floating rate payer was obligated to make. D. is extensive and equal to the total value of the payments that the floating rate payer was obligated to make. E. None of the options are correct.

Q: A swap A. obligates two counterparties to exchange cash flows at one or more future dates. B. allows participants to restructure their balance sheets. C. allows a firm to convert outstanding fixed rate debt to floating rate debt. D. obligates two counterparties to exchange cash flows at one or more future dates and allows participants to restructure their balance sheets. E. All of the options are correct.

Q: Which of the following is(are) example(s) of interest rate futures contracts? A. Corporate bonds B. Treasury bonds C. Eurodollars D. Treasury bonds and Eurodollars E. Corporate bonds and Treasury bonds

Q: Consider the following: Assume the current market futures price is 1.66 A$/$. You borrow 167,000 A$, convert the proceeds to U.S. dollars, and invest them in the U.S. at the risk-free rate. You simultaneously enter a contract to purchase 170,340 A$ at the current futures price (maturity of 1 year). What would be your profit (loss)? A. Profit of 630 A$ B. Loss of 2300 A$ C. Profit of 2300 A$ D. Loss of 630 A$

Q: Consider the following: If the market futures price is 1.69 A$/$, how could you arbitrage? A. Borrow Australian dollars in Australia, convert them to dollars, lend the proceeds in the United States, and . enter futures positions to purchase Australian dollars at the current futures price. B. Borrow U.S. dollars in the United States, convert them to Australian dollars, lend the proceeds in Australia, . and enter futures positions to sell Australian dollars at the current futures price. C. Borrow U.S. dollars in the United States, invest them in the U.S., and enter futures positions to purchase Australian dollars at the current futures price. D. Borrow Australian dollars in Australia and invest them there, then convert back to U.S. dollars at the spot price. E. There is no arbitrage opportunity.

Q: Consider the following: If the futures market price is 1.63 A$/$, how could you arbitrage? A. Borrow Australian dollars in Australia, convert them to dollars, lend the proceeds in the United States, and . enter futures positions to purchase Australian dollars at the current futures price. B. Borrow U.S. dollars in the United States, convert them to Australian dollars, lend the proceeds in Australia, . and enter futures positions to sell Australian dollars at the current futures price. C. Borrow U.S. dollars in the United States, invest them in the U.S., and enter futures positions to purchase Australian dollars at the current futures price. D. Borrow Australian dollars in Australia and invest them there, then convert back to U.S. dollars at the spot price. E. There is no arbitrage opportunity.

Q: Consider the following: What should be the proper futures price for a 1-year contract? A. 1.703 A$/$ B. 1.654 A$/$ C. 1.638 A$/$ D. 1.778 A$/$ E. 1.686 A$/$

Q: Let RUS be the annual risk-free rate in the United States, RJ be the risk-free rate in Japan, F be the futures price of $/yen for a 1-year contract, and E the spot exchange rate of $/yen. Which one of the following is true? A. If RUS > RJ, then E < F. B. If RUS < RJ, then E < F. C. If RUS > RJ, then E > F. D. If RUS < RJ, then F = E. E. There is no consistent relationship that can be predicted.

Q: Let RUS be the annual risk-free rate in the United States, RUK be the risk-free rate in the United Kingdom, F be the futures price of $/BP for a 1-year contract, and E the spot exchange rate of $/BP. Which one of the following is true? A. If RUS > RUK, then E > F. B. If RUS < RUK, then E < F. C. If RUS > RUK, then E < F. D. If RUS < RUK, then F = E. E. There is no consistent relationship that can be predicted.