The act of Congress which prohibited "unfair or deceptive acts or practices in commerce" is called

Consider a stock with a 50 percent probability of zero net earnings and a 50 percent probability of net earnings equal to $20 per share each year continuously in the future. Furthermore, assume that people are risk averse. That is, they will have to be compensated for uncertainty accompanying variation in their future wealth. If the interest rate were 5 percent, how much would people be willing

to pay for a share of this stock? a. $10 b. $200 c. less than $200 d. more than $200 e. $400

The spot exchange rate is equal to the forward exchange rate:

a. When the central bank chooses to equalize both rates. b. When the interest rates of the two countries are not expected to change. c. When the difference between the interest rates of the two countries are expected to remain constant. d. When the nominal interest rates of the two countries are equal. e. When the interest rate of at least one of the two countries equals the spot exchange rate.