Consider the Following Discrete Probability Distributions of Payoffs for 3

question 60

Multiple Choice

Consider the following discrete probability distributions of payoffs for 3 securities that are held in a DI's trading portfolio (payoff amounts shown are in $millions) : $$\begin{array} { | l | l | l | } \hline \text { SECURITY } & \text { PROBABILITY } & \text { PAYOFF } \\\hline \text { Alpha } & 0.50 & 355 \\\hline & 0.49 & 150 \\\hline & 0.01 & - 300 \\\hline\end{array}$$ $$\begin{array} { | l | l | l | } \hline \text { SECURITY } & \text { PROBABILITY } & \text { PAYOFF } \\\hline \text { Beta } & 0.50 & 400 \\\hline & 0.49 & 150 \\\hline & 0.0025 & - 300 \\\hline & 0.0075 & - 3,300 \\\hline\end{array}$$ $$\begin{array} { | l | l | l | } \hline \text { SECURITY } & \text { PROBABILITY } & \text { PAYOFF } \\\hline \text { Gamma } & 0.49 & 400 \\\hline & 0.49 & 150 \\\hline & 0.01 & - 150 \\\hline & 0.01 & - 2,000 \\\hline\end{array}$$
-What is the expected payoff, the 99% value at risk (VAR) and the expected shortfall (ES) of security Gamma (in millions) ?

• A)+$248; -$2,000; -$2000
• B)-$248; -$20; -$2,000
• C)-$2.150; -$2,150; -$2,150
• D)+$248; -$21.50; -$20.00
• E)±$0.00; -248; -$2,150

Identify different perspectives and theories on globalization and its impacts.

Understand the role of technology and communication in facilitating globalization.

Recognize the importance of global consumerism and its impact on cultures and economies.

Understand the causes and effects of anti-globalization movements and their significance in the global landscape.

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