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Hi, please help with the intuition for these multiple choice questions. Skip 9 and 10 Question 5. Which of the following does not enter the

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Hi, please help with the intuition for these multiple choice questions. Skip 9 and 10

image text in transcribed
Question 5. Which of the following does not enter the Black-Scholes equation for valuing a call option? III The riskfree rate III The current stock price III The expected return of the stock III The time until expiration of the option Question 6. A forward contract to buy one share of Microsoft in one year is always worth _______ a call option to buy one share of Microsoft in one year with the same exercise price. III More than III The same as |:| Less than III It depends Question 7. According to the CAPM, the expected excess return of an asset is proportional to III the asset's covariance with the market III the asset's idiosyncratic risk III the asset's price III the asset's variance Question 8. Which is most preferred to an investor that maximizes expected log utility? III $5 for certain III A 50/50 gamble for $6 or $4 III A 75/25 gamble for $6 or $2 III A 50/50 gamble for $7 or $3 Question 9. Technical analysis is protable under which form(s) of the efcient market hypothesis? El No form El Only the weak form III Only the weak and semistrong forms El All forms Question 10. How has the Federal Reserve's post meeting statements changed over time? El Statements have gotten shorter and more precise because big data allows economists to make more accurate predictions of the economy. III The vocabulary in statements does not vary as much as it used to because of forward guidance and the zero lower bound. III The Chair of the Federal Reserve has a strong inuence on the structure of the statements, so the statements look vastly different depending on who is the Chair

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