In a Study Conducted by Marianne Bertrand and Sendhil Mullianthan

question 79

Multiple Choice

In a study conducted by Marianne Bertrand and Sendhil Mullianthan, identical resumes were sent in response to help wanted ads in newspapers, with half of the resumes assigned an African-American-sounding name and half assigned a white-sounding name.The study found that

• A)employers were equally likely to interview workers with white-sounding names and with African-American-sounding names.
• B)employers were 50 percent more likely to interview workers with African-American-sounding names.
• C)employers were 50 percent more likely to interview workers with white-sounding names.
• D)no employers chose to interview workers with African-American-sounding names.

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Definitions:

Hedge Effectiveness

A measure of how well a hedge transaction reduces the risk of the exposure that the hedge was intended to protect against.

Economic Relationship

Refers to the interactions between different economic variables or entities, such as the connection between supply and demand or investment and economic growth.

Hedge Ratio

A ratio used to measure the proportion of a position that is hedged, indicating the effectiveness of a hedge against fluctuations.

Fair Value Hedge

A hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, or some component thereof, that is attributable to a particular risk and could affect profit or loss.