Appendix: Revenue Equivalence Theorem Refers to Equal Seller Revenue in Which

question 18

Multiple Choice

Appendix: Revenue equivalence theorem refers to equal seller revenue in which of the following pairs:

• A) sealed bid auctions and English auctions
• B) second highest wins and pays auctions and Dutch auctions
• C) English highest wins and pays auctions and sealed bid Dutch auctions
• D) highest wins and pays auctions and second highest wins and pay auctions

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Definitions:

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified period of time.

Quarterly Compounded

Interest that is calculated and added to the principal every three months, increasing the amount on which subsequent interest calculations are based.

Quarterly Compounded

Refers to the calculation of interest that is added to the principal balance of an investment or loan four times a year.

Equivalent Effective Rate

A comparable interest rate that equates the interest earned on different investments or loans over the same time period, taking into account the effects of compounding.