In Metallgesellschaft's Hedging Debacle the company arranged long term forward contracts to sell oil/energy. Their hedge was to sell short-term futures contracts and roll into new months(called a stacked hedge). The hedge turned out poorly for MG because the stacked hedge works when markets are in backwardation and the basis risk resulted in negative profit between the selling the futures and delivering in the forwards. What is true about the activities of Metallgesellschaft's hedging I. sources of risk were basis risk and liquidity risk
II. losses on the short term futures contracts hedge would not be covered by the long term forwards
III. the stacked hedge works when markets are in contango
IV. Metallgesellschaft used a 1 to 1 hedge when they should have used an optimal hedge ratio

a. I, II, III, IV
b. I, II, IV
c. I, III
d. I, III, IV

The hawthorne works was a large western electric factory with 45,000 employees. during the 1920s and 1930s, hawthorne works was the site of some well-known industrial studies. in one of the studies, researchers investigated the impact of different working conditions on worker productivity. prior to the start of the study, researchers secretly measured workers' productivity for several weeks. then researchers chose two workers, who then chose their own teams. the teams were separated from the general workforce and completed their work in different experiment rooms where the researchers could observe them more easily. over a 5-year period researchers manipulated the structure of the workday for each team (number and duration of breaks and number of hours per shift). for each of these changes in working conditions, the researchers measured the effect on productivity. for some conditions, such as frequent short breaks, workers rebelled by intentionally decreasing productivity.why did the researchers secretly measure the workers' productivity before creating the two treatment groups? a, to create similar treatment groups so that a cause-and-effect relationship could be establishedb, to draw conclusions about the productivity of all workers in the plant based on the test groupsc, to directly control for confounding variablesd, to provide a baseline for measuring worker productivity

Which represents a surplus in the market? a market price equals equilibrium price. b quantity supplied is greater than quantity demanded. c market price is less than equilibrium price. d quantity supplied equals quantity demanded.

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.