A call on euro with an exercise price of $1.35/euro has a premium of $0.05 per euro. If the spot rate at expiration is $1.34, then the net profit for the buyer of the call is Group of answer choices $ -0.04 per euro $ 0.05 per euro $ -0.05 per euro $ 0.04 per euro

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

Which of the following is not a characteristic of a weak economy? a. a low employment rateb. a high inflation ratec. a decreased gdpd. a high unemployment rate