Use the Information for the Question(s)below

question 72

Multiple Choice

Use the information for the question(s) below.
An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks.Consider an ETF for which each share represents a portfolio of two shares of International Business Machines (IBM) ,three shares of Merck (MRK) ,and three shares of Citigroup Inc.(C) .Suppose the current market price of each individual stock are shown below:
-Suppose that the ETF is trading for $666.95;you should:

• A)sell the EFT and buy 2 shares of IBM,3 shares of MRK,and 3 shares of C.
• B)sell the EFT and buy 3 shares of IBM,2 shares of MRK,and 3 shares of C.
• C)buy the EFT and sell 2 shares of IBM,3 shares of MRK,and 3 shares of C.
• D)do nothing,no arbitrage opportunity exists.

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Definitions:

Survival Threats

Situations or conditions that pose significant risk to the continued existence or well-being of an individual or species.

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

An educational method where two stimuli are consistently associated with each other, resulting in a reaction initially triggered by the second stimulus being subsequently triggered by the first stimulus alone.

Dissociative Disorders

Mental health conditions characterized by a disconnection between thoughts, identity, consciousness, and memory.