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NEW QUESTION: 1
Backwardation in commodity futures is explained by:
A. storage costs
B. contango
C. risk free rate or the cost of futures funding
D. convenience yields
Answer: D
Explanation:
Explanation
Backwardation is said to occur when futures prices are lower than the current spot prices. This would happen only when carrying costs are negative. Carrying costs are equal to interest, plus storage costs and less any
'convenience yield'. The existence of large convenience yields may explain backwardation in commodity futures prices. Therefore Choice 'd' is the correct answer.
Contango is the 'normal' market situation where forward prices are higher than spot prices. Storage costs explain contango, not backwardation. Risk free rates, or the cost of funding for the futures position, are always positive and do not explain backwardation.

NEW QUESTION: 2
A process is normally distributed with a mean of 200 and a variance of 25. One item is randomly selected, what is the probability of this item having a value greater than 210?
A. 0.3446
B. 0.0012
C. 0.0375
D. 0.0228
Answer: D

NEW QUESTION: 3
Informix is currently in online mode. As a DataBase System Administrator (DBSA), you switch to administration mode with ADMIN_USER_MODE_WITH_DBSA = 0. Who can access Informix databases?
A. only root, Informix or a DBSA
B. only Informix
C. only Informix or a DBSA
D. only a DBSA
Answer: C

NEW QUESTION: 4
A highly accelerated stress screening (HASS) test can help to detect and separate units with manufacturing defects. HASS test limits are typically developed from:
Response:
A. Production reliability acceptance tests.
B. Statistical process control data
C. Bayesian reliability testing.
D. Highly Accelerated Life Tests.
Answer: D