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NEW QUESTION: 1

A. Option B
B. Option A
C. Option C
D. Option D
Answer: B

NEW QUESTION: 2
Known limitations of VaR methodology include the fact that changes in market may not tend to normal distribution (specifically, that very large movements are more likely than predicated by the normal distribution assumption); BECAUSE:
A. Correlation between market movement can vary (especially during periods of stress in the market)
B. The changes in present values are not perfectly linearly related to changes market rates.
C. All of these
D. The use of one day horizon does not fully capture the market risk of positions that cannot be liquidated in one day.
Answer: C

NEW QUESTION: 3
Trading Co. uses the percentage-of-completion method to recognize revenue. In 2000, Trading Co., agreed to construct a facility at a total contract price of $27.0 million and a total expected cost of $24.0 million. At the end of 1999 estimated costs have been changed to $25.0. Actual costs and cash inflow information are presented below (in $ millions):

What will Trading Co. report as net income in 1998, 1999 and 2000 respectively?
A. 0.5875 0.5885 0.8240
B. 0.0587 0.5885 0.8240
C. 1.1163 1.6473 1.9364
Answer: A
Explanation:
Cumulative Cost 1998 = (4.7/24.0)*100 = 19.5833% Cumulative Revenue 1998=
(4.7/24.0)*27.0 = 5.2875 Current Revenue 1998=(4.7/24.0)*27.0 Profit= Current Revenue - Cost = 0.5875
Cumulative Cost 1999 = (14.7/25.0)*100 = 58.8% Cumulative Revenue 1999= (4.7/25.0)*27.0 = 15.876
Profit= Current Revenue - Cumulative realized profit - cumulative Cost = 15.876 - 0.5875 - 14.7 = 0.5885.

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C. MS-SQL 2005/Express
D. Microsoft .NET Framework 3.5 Family Updates
E. MSDE 2000
Answer: C,D

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