1. Which of the following is most likely accurate if a person’s marginal rate of substitution of good A for good B, MRSAB is equal to 4? A. The slope of a line tangent to the indifference curve at that point is 4. B. The person is willing to give up 4 units of A… Read More

1. ABC Corp. issues debentures and provides land as a lessor to its customers. An analyst makes following statements about the company. Statement 1: ABC sells debt and provides a factor of production. Statement 2: ABC buys debt and provides an intermediate good. Which statement is most likely correct based on the given information? A.… Read More

1. Google’s stock price is increasing and reaches a price range wherein selling activity is expected to emerge that prevents further price increases. This situation is best described as a: A. resistance level. B. change in polarity point. C. support level.   2. Which of the following statements is most likely correct about put/call ratio?… Read More

1. Which of the following statements regarding the p-value is most likely to be correct? A. The p-value is the smallest level of significance at which the null hypothesis can be rejected. B. The p-value is the smallest level of significance at which the null hypothesis can be accepted. C. The p-value is the largest… Read More

1. Paul uses the stratified random sampling technique of categorization for his research project. He first divides the country into 15 regions; then for each region, he categorizes the population into three age groups; young, adults, and elderly. Finally, he divides these categories into males and females. The number of cells or strata the sampling… Read More

1. You toss a coin 14 times. The probability of getting exactly 6 tails is: A. 0.016 B. 0.183 C. 0.428   2. Which of the following is least likely to be a characteristic of a normal distribution? A. Skewness = 0 B. Kurtosis = 3 C. Mean > Mode   3. Which of the… Read More

1. Which of the following types of probability is most likely to be based on logical analysis? A. An empirical probability B. A priori probability C. A subjective probability   2. Professor A.F. comes across the following three statements by his students. Fatima: Covariance lies within the range -1 < Covariance < +1 Taimour: The… Read More

1. Statistical inference least likely involves which of the following steps? A. Forecasting. B. Estimation and judgment. C. Description of a data set.   2. Which of the following statements about arithmetic mean is most accurate? A. Deviations from the arithmetic mean indicate risk. B. The product of the deviations around the mean is equal… Read More

1. Alexander Stan plans to invest \$1.5 million in a project today. The project is expected to pay \$200,000 per year in perpetuity. The cost of capital is 8 percent. Will Stan benefit by investing in the project, as judged by the NPV rule? A. No, the project is not worth the investment. B. Yes,… Read More

Questions: 1. You are estimating the required rate of return for a particular investment. Which of the following premiums are you least likely to consider? A. Inflation premium B. Maturity premium C. Nominal premium 2. A three-year CD offers a stated annual interest rate of 10 percent compounded quarterly. Given an initial investment of \$80,000,… Read More