When Global Capital Markets Collectively React to International Events Like

question 16

Multiple Choice

When global capital markets collectively react to international events like Enron's collapse, it is common to find

• A) that there is no impact on multinational companies' ability to raise capital.
• B) a reduction in capital available to companies with investment grade credit ratings.
• C) that multinational firms are so diversified that they are not affected by this event.
• D) all of the other answers are correct

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Definitions:

Confidence Interval

A set of numbers, based on statistics from a sample, that has a high probability of including the value of a not-yet-known parameter of the population, considering a certain level of confidence.

Waiting Time

The duration of time until a specific event occurs.

Sample Mean

The average value of a sample set of numbers, calculated by adding all the values together and dividing by the number of values.

Confidence Interval

An interval estimate used to infer the reliability of a parameter estimate, such as a mean or proportion, within a population.