Use the Information Given Below to Answer the Following Question(s)

question 32

Multiple Choice

Use the information given below to answer the following question(s) . Below is a payoff table that lists three mortgage options: $$\begin{array} { | l | l | l | l | } \hline & { \text { Outcome } } \\\hline \text { Decision } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { 2-year ARM } & \$ 66,645 & \$ 43,650 & \$ 38,560 \\\hline \text { 5-year ARM } & \$ 62,857 & \$ 47,698 & \$ 42,726 \\\hline \text { 25-year fixed } & \$ 52,276 & \$ 52,276 & \$ 52,276 \\\hline\end{array}$$
-What is the maximum opportunity loss incurred for the 2-year ARM?

• A) $ 8,626
• B) $ 13,716
• C) $ 14,369
• D) $ 10,581

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Definitions:

Restore

The process of returning data to its original condition, or deploying a backup to recover lost or damaged data.

Parallel Processing

A method of computation where many calculations or processes are carried out simultaneously, leveraging multiple processors or computers to solve complex problems faster.

Network

A group of interconnected computers, servers, and other devices that allow for data sharing and communication amongst them.

Cache Memory

A type of high-speed volatile computer memory that provides high-speed data access to the processor and stores frequently used computer programs, applications, and data.