Executives Are Often Very Heavily Invested in Their Own Stock

question 23

Multiple Choice

Executives are often very heavily invested in their own stock.To mitigate the effects of this concentration,which of the following actions could they take?

• A)Enter into an equity swap to pay the returns on their own stock in exchange for receiving Libor.
• B)Enter into an equity swap to pay the returns on their own stock in exchange for receiving the returns on a broad equity index.
• C)Buy collars on the stock.
• D)All of the above.

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Definitions:

Epistasis

An interaction between genes in which the effect of one gene is modified by one or several other genes, which can enhance, diminish, or suppress the expression of the first gene.

Pleiotropic Genes

Genes that have multiple effects on an organism's phenotype, influencing several different traits.

Nature Versus Nurture

A debate concerning the relative importance of an individual's innate qualities versus personal experiences in determining or causing differences in physical and behavioral traits.

Genotypes

The genetic makeup of an organism, encompassing all genes and their variations.