When Only a Very Small Amount of Money Has Been

question 2

Multiple Choice

When only a very small amount of money has been embezzled:

• A) taking no action is the best course of action.
• B) the perpetrator should be punished by publishing the details of the fraud in the local newspapers.
• C) the perpetrator should be prosecuted.
• D) the company should transfer the perpetrator to a position with more supervision.

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Definitions:

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the numbers in the set deviate from the mean (average).

Risk-free Rate

This is the theoretical rate of return of an investment with zero risk, typically represented by the yield on government securities.

Call Option

A financial agreement which permits the purchaser the option, though not the requirement, to purchase a specific asset like a stock, bond, commodity, or another type of asset at a predetermined price during a defined timeframe.

Exercise Price

The price at which the holder of an option can buy (call) or sell (put) the underlying security.