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NEW QUESTION: 1
Section A (1 Mark)
Merton's theory is ___________
A. about of continuous time finance
B. about dynamic replication
C. about a link from Arrow-Debreu world to real world
D. All of the above
Answer: D

NEW QUESTION: 2
What is the default periodic interval at which RIPv1 sends routing updates?
A. 15 seconds
B. RIPv1 only sends routing updates when the topology changes.
C. 45 seconds
D. 90 seconds
E. 60 seconds
F. 30 seconds
Answer: F
Explanation:
Explanation/Reference:
Explanation:
"Originally, each RIP router transmitted full updates every 30 seconds." http://en.wikipedia.org/wiki/ Routing_Information_Protocol

NEW QUESTION: 3
An entity uses the following formula in determining its optimal level of cash.

This formula is a modification of the economic order quantity EOQ formula used for inventory management. Assume that the set of selling marketable securities is US $10 per transaction and the interest rate on marketable securities is 6% per year. The entity estimates that it will make cash payments of US $12.000 over a one-month period. What is the average cash balance rounded to the nearest dollar)?
A. US $2,000
B. US $6,928
C. US $1,000
D. US $3,464
Answer: D
Explanation:
The BOO for inventory is a function of ordering cost per order, inventory demand, and carrying cost. In the cash model, the fixed cost per sale of securities is equivalent to the ordering cost, the demand for cash is similar to the demand for inventory, and the interest rate is effectively the cost of carrying a dollar of cash for the period. Substituting in the formula yields an optimal cash balance of about US $6.928. Thus, the average cash balance is US $3,464 $6,928 - 2).