Suppose the price index is 100 in the base year and the price of a pound of oranges in that year is $1.96 . Now, if the price index changes to 105 in the following year, how much would a pound of oranges cost?

If two risky assets, A and B, have negative correlation, then when A's yield increases

A) B's yield increases. B) B's yield decreases. C) B's yield can increase or decrease. D) There is not enough information to determine what B's yield will do.

If major traders believe the price of a stock should be higher than its current market price,

A) they have an incentive to sell the stock. B) their actions will result in the information they possess being incorporated into the price of the stock. C) there is little they can do because government regulation precludes their acting on what they know. D) they should petition the Securities and Exchange Commission to authorize an adjustment in the price of the stock.