Which of the Following Statements Is INCORRECT

question 15

Multiple Choice

Which of the following statements is INCORRECT?

• A) The VIX was introduced during the 1990s to measure the market's expectation of the 30-day volatility implied by at-the-money S&P 100 Index (OEX)option prices.
• B) During the early 2000s,VIX index was modified to represent an expected volatility instead of an implied volatility.
• C) VIX is also known as the "fear index" because it has become a widely watched barometer of stock market volatility,reflecting investor anxiety.
• D) The VIX is a measure of the level of the S&P 100 stock market index.
• E) The VIX tends to increase during financial crises.

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Definitions:

Business Debts

Obligations that a business incurs as a result of operating activities, including loans, accounts payable, and any other form of borrowed money.

No Personal Liability

A legal principle that protects individual actors within a corporation or legal entity from bearing personal financial responsibility for the entity's liabilities.

Agency Relationships

A legal arrangement where one party, the agent, acts on behalf of another party, the principal, in transactions with third parties.

Management Rights

Rights retained by employers, allowing them to manage, direct, and control their business operations and workforce.