Suppose That the ETF Is Trading for $362

question 20

Multiple Choice

Suppose that the ETF is trading for $362.36;you should:

• A)sell the EFT and buy 2 shares of IBM,3 shares of MRK,and 3 shares of C.
• B)sell the EFT and buy 3 shares of IBM,2 shares of MRK,and 3 shares of C.
• C)buy the EFT and sell 2 shares of IBM,3 shares of MRK,and 3 shares of C.
• D)do nothing,no arbitrage opportunity exists.

Identify the primary goal of management in finance and how it influences corporate strategy.

Distinguish between various types of financial securities, including stocks, bonds, and government securities.

Compare the advantages and disadvantages of different business forms, focusing on taxation, liability, and capital raising.

Define bonds and understand their role as financial assets and debt instruments.

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Definitions:

Need for Competence

An individual's inherent desire to effectively interact with their environment, demonstrating skillfulness and mastery in their tasks or activities.

Need for Power

A psychological trait described by David McClelland as the desire to influence, teach, or encourage others to achieve.

Need for Affiliation

The desire to form connections with others and be part of a group or community.

Need for Competence

An individual's intrinsic desire to be effective in dealing with the environment and to master complex tasks.