The theory of bureaucratic behavior

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Reference no: EM132062723

1. ____ occurs when the investor pays less for the security than its face value and the increase in price provides a return at maturity.

Compounding

Accumulating

Discounting

Accepting

2. The theory of Bureaucratic Behavior suggests that the objective of a government bureaucracy is to ____.

maximize its own welfare

maximize the public's welfare

act in the public's best interest

minimize its own welfare

3. Which of the following relationships is (are) most likely TRUE:

I. USD vs. WTI prices have a positive correlation

II. WTI vs. Emerging Market equity markets have a positive correlation

III. As data frequency decreases, correlation strength decreases

IV. As foreign sales (as a percentage of total sales) increases for SP500 companies, the correlation between US equity markets and foreign equity markets will decrease

A. I

B. II

C. III

D. IV

E. II, IV

(please explain answer)

Reference no: EM132062723

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