If the Price of Airplane Tickets Increased by 5% While

question 23

Multiple Choice

If the price of airplane tickets increased by 5% while the prices of other goods and services increased by 10% on average,then the relative price of airplane tickets has

• A) increased 5%.
• B) increased 10%.
• C) decreased.
• D) remained constant.
• E) may have either increased or decreased.

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Definitions:

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.

Directional Strategy

An investment approach that involves taking long or short positions based on predictions of market or security movement direction.

Management Fees

Management fees are charges levied by investment managers for the administration and operation of an investment fund, typically a percentage of the fund's assets.