What Are the Values of U,the Up State Multiplier,and D,the

question 6

Multiple Choice

What are the values of u,the up state multiplier,and d,the down state multiplier,if there are monthly intervals and the standard deviation is .38?

• A)1.1159; .8961
• B).0317; 1.0327
• C).0317; .9683
• D).2193; .7807
• E)1.1159; −.1159

---

Definitions:

Price Discrimination

Price Discrimination is the strategy of selling the same product at different prices to different groups of customers, based on their willingness to pay.

Pure Monopolist

A market structure where a single company is the exclusive provider of a product or service in a market, facing no competition.

Economies of Scale

Economic benefits that companies gain from their size of operations, which result in a reduction in the cost per unit as the scale increases.

Horizontal Demand

A market situation where the demand for a product remains constant regardless of changes in its price.