Suppose That Ms

question 2

Multiple Choice

Suppose that Ms.Lynch can make up her portfolio using a risk-free asset that offers a surefire rate of return of 5% and a risky asset with an expected rate of return of 10%, with standard deviation 5.If she chooses a portfolio with an expected rate of return of 8.75%, then the standard deviation of her return on this portfolio will be

• A)7.50%.
• B)3.75%.
• C)1.88%.
• D)6.75%.
• E)None of the above.

Identify the factors that influence the pricing and valuation of futures contracts.

Calculate profits and losses in futures trading given changes in market prices.

Recognize the purpose and function of options contracts and how they differ from futures contracts.

Identify and differentiate between various types of derivative securities and their uses.

---

Definitions:

Wage Rate Disparities

The differences in wages paid to workers in different occupations, industries, regions, or demographic groups, often reflecting inequalities.

Employable Migrants

Refer to individuals who have migrated from their country of origin and possess the skills, qualifications, and abilities to gain employment in the new country.

High-Paying Nations

Countries where the average salary levels are significantly higher than the global average.

Wage Equalization

The theory or goal of aligning wages for similar work across different regions or sectors to minimize inequality.