Recently,a Car Company and a Designer Teamed to Create and Market

question 36

Multiple Choice

.Recently,a car company and a designer teamed to create and market scarves.Ten dollars from the sale of each scarf was donated to the Susan G.Komen Breast Cancer Foundation.By helping find a cure for breast cancer,the car company is:

• A)manipulating the consumer.
• B)behaving in a socially responsible fashion.
• C)perpetuating a materialistic viewpoint.
• D)complying with federal regulations.
• E)initiating a market development strategy.

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Definitions:

Convergence Play

An investment strategy that exploits the price difference between two or more markets or securities with the expectation that their prices will eventually converge.

Statistical Arbitrage

A quantitative approach to trading that uses statistical models to identify price inefficiencies among securities for profit.

S&P 500 Future

A financial contract based on the future value of the S&P 500 stock market index.

Statistical Arbitrage

A quantitative approach to equity trading involving complex statistical models to identify price inefficiencies between pairs of securities.