The defendant, a real estate agent, is on trial for criminal fraud, charged with selling houses with major structural problems while representingto buyers that the houses were structurally sound. The defendant claims that she had no knowledge the houses were not structurally sound. At trial, the prosecution offers evidence to show that, three years prior, the defendant was fired from a different real estate agency for knowingly selling houses with major structural problems. All notice requirements have beenmet. What is the best basis for admitting this evidence?

Which of the following statements about legal risk is not true?

A lender has two loans outstanding.  Loan A has a probability of default of 3%.  If A defaults, B has a probability of default of 70%. If A does not default, B has a probability of default of 5%. Which of the following is the probability that B will default?

Which of the following is a good definition of the duration of a bond?

Which of the following is not a specific example of operational risk?

Which of the following is not a source of model risk?

Find the present value of the floating payments plus $1 notional SOFR swap that is 75 days into the first settlement period and has 15 days to go until the next payment and 105 days to go to the second and last payment. The discount factors are 0.9884 and 0.9883. The accrued interest is 0.01. The underlying is a 90-day rate.

What do we mean by capital allocation?

Which of the following statements about interest rate swaps is not true?

Which of the following characteristics of a currency swap is likely to be associated with its use to hedge a foreign fixed-rate bond issue?