Question 39

Credit Default Swaps (CDS). CDS are in effect, an insurance product that pays off in the event of

a trigger event (some sort of technical or real default). The protection seller receives a premium

from the protection buyer.

True

False

Question 40

European Australasia, Far East (EAFE) Index. EAFE is one of the most used indexes of non-US

stocks.

True

False

Question 41

Tobins Q. Tobins Q is the ratio of market price to book value.

True

False