Use the Following Information to Answer the Question(s)below

question 23

Multiple Choice

Use the following information to answer the question(s) below.
An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of two shares of Apple Inc. (APPL) , one share of Google (GOOG) , and ten shares of Microsoft (MSFT) . Suppose the current stock prices of each individual stock are as shown below:

-Pfizer Inc. (PFE) stock is currently trading on the NYSE with a quoted bid of $18.35 and an ask price of $18.40. At the same time NASDAQ dealers are posting for following bid and ask prices for PHE: Which of these NASDAQ represents an arbitrage opportunity when compared to the NYSE quotes?

• A)Only NASDAQ dealer #1
• B)Only NASDAQ dealer #2
• C)Only NASDAQ dealer #3
• D)Both NASDAQ dealer #1 and dealer #3
• E)None of the above

Distinguish between markup based on cost and markup based on selling price.

Solve practical problems involving markup in different types of businesses.

Understand the classification and organization of biological life.

Recognize the principles of systematics and taxonomy.

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Definitions:

Evolutionary Psychology

A theoretical approach in psychology that explains mental and psychological traits as adaptations, i.e., as the functional products of natural selection.

The Origin of Species

A seminal book by Charles Darwin that introduced the theory of evolution through natural selection.

Keller and Nesse's

Refers to the work or perspectives of Randolph M. Nesse and perhaps his collaborations with others like George C. Williams or Keller, focusing on evolutionary psychology or Darwinian medicine.

Sociometer Theory

A psychological theory proposing that self-esteem is an internal gauge of the degree to which one is included versus excluded by others.