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Centro Corp. recently issued a floating-rate note (FRN) that includes a feature that prevents its coupon rate from falling below a prespecified minimum rate. This feature in an FRN is most likely refe

A. collar.
B. floor.
C. cap.

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When an investigator wants to test whether a particular parameter is greater than a specific value, he null and alternative hypothesis are best defined as:

A. H0:θ<θ0 versus Ha:θ>θ0.
B. H0:θ>θ0 versus Ha:θ<θ0.
C. H0:θ=θ0 versus Ha:θ≠θ0.

Once an investor chooses a particular course of action, the value forgone from alternative actions is best described as a(n):

A. Requiredreturn.
B. Sunkcost.
C. Opportunitycost.

A hedge fund begins the year with $120 million and earns a 25% return for the year. The fund charges a 1.5% management fee on end-of-year fund value and a 15% incentive fee on the return, net of the m

A. 19.66%.
B. 20.56%.
C. 21.25%.

In the short run, a firm operating in a perfectly competitive market will most likely avoid shutdown if it is able to earn sufficient revenue to cover which of the following costs?

A. Variable
B. Marginal
C. Fixed

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