Which of the Following Would Not Be Important When Evaluating

question 10

Multiple Choice

Which of the following would not be important when evaluating measures of frequency?

• A) incidence rate
• B) how long the infection lasts
• C) prevalence rate
• D) how the population is defined
• E) factors that may be linked to cases of the disease

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Definitions:

Premium

The amount paid for an insurance policy or an amount paid above the nominal value for a security; also, the fees paid for an option contract.

Protective Put

Purchase of an asset combined with a put option on that asset to guarantee proceeds at least equal to the put’s exercise price.

Underlying Asset

The financial asset upon which a derivative instrument, such as a futures or options contract, is based.

Convertible Bond

A bond with an option allowing the bondholder to exchange the bond for a specified number of shares of common stock in the firm. The conversion ratio specifies the number of shares. The conversion price is the current value of the shares for which the bond may be exchanged. The conversion premium is the excess of the bond’s value over the conversion value.