If the volatility of returns of an underlying security increases, then:
A. Both call and put option prices increase.
Both call and put option prices decrease.
Call prices increase and put prices decrease.
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One advantage of exchange traded funds relative to open-end mutual funds is:
A. They trade throughout the day.
B. They offer greater diversification.
C. They have smaller bid-ask spreads.
The real estate valuation approach that uses a perpetuity discount type model is the:
A. Cost approach.
B. Income approach.
C. Sales comparison approach.
The crowding-out effect is most likely associated with:
A. Falling real interest rates.
B. Government budget deficits.
C. Government budget surpluses.
Joyce La Valle, CFA is a portfolio manager at a global bank. La Valle has been told she should use a specific vendor for equity investment research that has been approved by the banks headquarters. Be
A. Use the local research vendor.
B. Use the bank-approved research vendor.
C. Use both the local and the bank-approved research vendors.