1. ____ occurs when the investor pays less for the security than its face value and the increase in price provides a return at maturity.
Compounding
Accumulating
Discounting
Accepting
2. The theory of Bureaucratic Behavior suggests that the objective of a government bureaucracy is to ____.
maximize its own welfare
maximize the public's welfare
act in the public's best interest
minimize its own welfare
3. Which of the following relationships is (are) most likely TRUE:
I. USD vs. WTI prices have a positive correlation
II. WTI vs. Emerging Market equity markets have a positive correlation
III. As data frequency decreases, correlation strength decreases
IV. As foreign sales (as a percentage of total sales) increases for SP500 companies, the correlation between US equity markets and foreign equity markets will decrease
A. I
B. II
C. III
D. IV
E. II, IV
(please explain answer)