Consider an investment that pays $1900 certain at the end of each of the next four years. If the investment costs $6650 and has a net present value (NPV) of $142.31, then the four year risk-free interest rate is closest to ________
Suppose the term structure of interest rates is shown below:
Term 1 year 2 years 3 years 5 years 10 years 20 years
Rate
(EAR%) 5.00% 4.80% 4.60% 4.50% 4.25% 4.15%
A) 4.01%
B) 3.51%
C) 5.01%
D) 4.51%
Answer: D
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An IS Auditor reviewing the results of a test of the disaster recovery plan conducted at a warm site notes that clients were unable to log-on to the restored on-line systems as there were insufficient data lines connecting the client premises to the recovery site. The MOST likely conclusion that the IS auditor would draw is that the:
A. clients were not sufficiently involved in plan development B. use of a warm site is inappropriate C. impact of a potential disaster was not fully analyzed D. external communications service providers were not involved in the test
Mark has long supported a particular brand of footwear and has always bought that brand. Recently, the footwear manufacturer was embroiled in a controversy for using child labor at its manufacturing plants
Mark doubts the news reports and continues to purchase the same brand of footwear. It is most accurate to say that Mark displays ________. A) selective distortion B) cognitive dissonance C) selective retention D) selective attention E) consumer ethnocentrism