How does the increased globalization of business and finance affect business cycles and
the leading, lagging, and coincident economic indicators?
Spreads are used to:
a. increase the return potential
b. circumvent option commissions
c. reduce risk in an option position.
d. all of the above are true.
In an upward trending market, what sectors might investors consider to increase
absolute returns?
What is performance attribution?
Other things equal, the higher the required return, the lower the P/E.
James wants to invest in bonds and has a 10 year investment horizon. To immunize his
portfolio, he must buy bonds with durations of ________ 10 years. These bonds will
have maturities ________ 10 years.
a. greater than; less than
b. equal to; less than
c. less than; equal to
d. equal to; greater than
If a security issue is registered with the SEC, there is less chance the investor will lose
money on the investment.