You Have Just Received Seed Money for a New Internet

question 29

Multiple Choice

You have just received seed money for a new Internet business and you want to hire a dozen people with a lot of creative potential.To hire the most creative people,you would select applicants who:

• A)have no experience in this industry,have high analytic intelligence,and have a relatively low need for achievement.
• B)value self-direction,have a high degree of nonconformity,and have a relatively low need for affiliation.
• C)have strong mental models regarding their field of knowledge,have high synthetic intelligence,and have a relatively low need for social approval.
• D)try to avoid taking risks,have a high need for achievement,and have a high need for social approval.
• E)have none of these sets of characteristics.

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Definitions:

T-bill Rate

The yield or interest rate paid to investors of U.S. Treasury bills, a short-term government security.

Hedge Ratio

The ratio used to determine the appropriate amount of hedging required to protect a position or portfolio from price fluctuations.

Option Smirk

A pattern on the implied volatility graph for options across different strike prices that shows asymmetric volatility, often indicating market anticipation of movement.

Black-Scholes Option

A mathematical model used to price European options and derivatives by estimating the variation over time of financial instruments.