Which of the Following Is True About Daily Exchange Rate

question 11

Multiple Choice

Which of the following is true about daily exchange rate moves?

• A) Four standard deviation daily moves in an exchange rate happen less frequently than they would do if changes were normally distributed
• B) Four standard deviation daily movements in an exchange rate happen more frequently than three standard deviation moves in the exchange rate
• C) The frequency of six standard deviation daily movements in an exchange rate is about once every 100 years
• D) None of the above

Distinguish between different rates of return and their appropriate application in valuation exercises.

Understand the concept of cultural relativism and ethnocentrism.

Identify the characteristics of material and non-material culture.

Comprehend the role of norms, folkways, and mores in shaping behavior within a culture.

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Definitions:

Opportunity Costs

The forfeiture of possible benefits from other options when selecting a specific choice.

Financial Investment

The purchase of a financial asset (such as a stock, bond, or mutual fund) or real asset (such as a house, land, or factories) or the building of such assets in the expectation of financial gain.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, often issued by banks.

Opportunity Costs

The value of the best alternative that must be foregone as a result of choosing a particular option.