A recent increase in the supply of oranges caused the price to drop from $5 to $2.50 per bushel and quantity demanded to rise from 10,000 bushels to 20,000 bushels. This indicates that the price elasticity of demand for oranges in this price range is

• A.-2
• B.-0.5
• C.-1

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The following securities are generally backed by the full faith and credit of the United States government:

• A.securities issued by the Government National Mortgage Association and Federal National Mortgage
  Association.
• B.municipal securities.
• C.moral obligation bonds.

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Suppose the Brazilian real is quoted at US$:R = 0.9955-1.0076 and the Thai baht is quoted at US$:B
= 25.2513-3986. What is the direct quote for the real in Bangkok (R:B=?)?

• A.30.5541 - 6456
• B.25.1376 - 2654
• C.25.0608 - 5134

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DuPont analysis generates which ratio?

• A.Return on Assets.
• B.Return on Equity.
• C.Profit Margin.

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Which of the following statements concerning diversification is incorrect?

• A.The primary factor affecting the diversification of a portfolio is each security's covariance with the other securities in the portfolio.
• B.Proper diversification can eliminate market risk.
• C.Diversification can reduce portfolio risk only if the security return correlation is less than 1.0.

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