Suppose That It Is Summer 2012 and President Obama Is

question 25

Multiple Choice

Suppose that it is summer 2012 and President Obama is running for reelection. In the Iowa Electronic Markets, a share of Obama is selling for $0.54 and will give $1 if Obama wins the election. Market participants believe that Obama's probability of winning reelection is:

• A) 4.6 percent.
• B) 5.4 percent.
• C) 54 percent.
• D) 46 percent.

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Definitions:

Perpetual Inventory System

An inventory management system that tracks the sale and restock of inventory items in real-time.

Merchandise

Products that are purchased, stored, and sold by businesses, typically in the retail industry.

Cash Payment

A transaction in which a payment is made in the form of physical currency or through a digital mechanism but representing immediate transfer of funds.

Merchandise

Goods or products that are bought and sold by businesses in the course of their trade or business operations.