Assume an FI Holds Three Different Positions

question 17

Multiple Choice

Assume an FI holds three different positions.The following DEAR information is available for the positions.Position 1 is a five-year zero-coupon bonds with DEAR of $12 500, position 2 is a CHF spot contract with DEAR of $9500 and the third position are Australian equities with DEAR of $34 500.Which of the following statements is true in relation to these positions?

• A)The DEAR of the portfolio can be calculated by simply adding up the individual DEARs.
• B)The DEAR of the portfolio can be calculated by simply multiplying the individual DEARs.
• C)The DEAR of the portfolio can be calculated by simply adding up the individual DEARs and adjusting the sum by an error factor gamma.
• D)None of the listed options are correct.

Recognize the symbols specific to various groove weld types, such as bevel groove, J-groove, and flare bevel groove welds.

Understand the rights and responsibilities of heirs regarding checks written by a deceased person.

Comprehend the conditions and time frames applicable to stop-payment orders.

Recognize the liability of parties involved in the certification and cashing of checks.

---

Definitions:

Acquisition Method

A set of accounting procedures used for incorporating the financial records of a target company into those of an acquirer.

Business Combination

The process of merging two or more entities into one, commonly through acquisitions, consolidations, or mergers.

Consolidated Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries as a single entity.

Minority Shareholders

Shareholders who own less than 50% of a company's shares, often having limited control or influence over company decisions.