1. What clouds the transparency in financial markets, especially between companies and the banks?

-Group of answer choices

-Principal-agent problem

-Asymmetric information

-Short sellers

-Consolidated ownership

-The media

2:

You are the manager of a fund believing that General Motors is going to do well and Ford will decline. You can guarantee profit through an arbitrage opportunity by going long on GM and short on Ford.

Group of answer choices

- True

- False

3:

If you short sell 100 shares of Delta at $35 and the share price goes down to $10, what is your overall profit/loss?

Group of answer choices

- Profit of $25

- Profit of $2,500

- Loss of $2,500

- Loss of $25

- Loss of $15

4:

A portfolio of which two stocks would be likely best diversified?

Group of answer choices

- Long General Motors, auto manufacturer & long Bayer, a multinational chemical and pharmaceutical company

- Long Dow Chemical, a multinational chemical corporation & long Bayer, a multinational chemical and pharmaceutical company?

- Long General Motors, auto manufacturer & long Ford, auto manufacturer