The time series that reflects a wavelike pattern describing a long-term trend that is generally apparent over a number of years is called the:

A) trend component.
B) cyclical component.
C) seasonal component.
D) irregular component.

B

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Based on the analyst’s data, the estimated country equity premium for Paragon is closest to:

An analyst gathered the following information about the capital markets in the United States and in Paragon, a developing country. Selected Market Information Yield on U.S. 10-year Treasury bond 4.5% Yield on Paragon 10-year government bond 10.5% Annualized standard deviation of Paragon stock index 35.0% Annualized standard deviation of Paragon dollar-denominated government bond 25.0% A. 4.29%. B. 6.00%. C. 8.40%.

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A company stands a better chance of having an international arbitration award upheld if its home-country government has signed:

A) the Paris Convention. B) the Prague Convention. C) the New York Convention. D) the Vienna Convention. E) the Geneva Convention.

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