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As an example of a ______ abnormality, people with schizophrenia show a different pattern of eye movements than people without the disorder when they are asked to follow a moving object with their eyes.

The white matter reductions associated with schizophrenia are found in ______.

Explain the pattern of addiction as it is explained in Chapter 12: 

Beliefs without support for their occurrence and which are at odds with the individual’s current environment are referred to as delusions.

Use the following information on the given loan to answer the questions below- assume the payoffs occur one year from now and everything is normalized to a $1 investment:   Probability Loan payoffs Rf bond Corp Bond State 1 No Default 0.9 1.08 1.05 1.1 State 2 Default 0.1 0.90 1.05 0.5 Price ? $1 $.98   What is the market price of this loan?

Consider the following balance sheet for an FI: Assets Duration = 7 years Assets=$1000 Liabilities Duration = 2 year  Liabilities=$950 Equity $50   Question: Compute the duration of equity and use it to approximate the change in the value of equity if interest rates increase by .25% (25 basis points) if interest rates are currently 3%

Suppose there are two ratings categories: A and B, along with default. The ratings-migration probabilities look like this for a B-rated loan:   Rating in 1 year Probability A 0.07 B 0.92 Default 0.01     The yield on A rated loans is 4%; the yield on B rated loans is 5%. All term structures are flat (i.e. forward rates equal spot rates). A loan in default pays off 40% of its face value (e.g. $40) You have one loan in your portfolio, B-rated, 3-year, 5% coupon (paid annually), with $100 face value.   Compute the price of the loan next year (just before the first coupon is paid) if the borrower is upgraded to an A rating .

The expected return on a loan is its interest rate.

In practice, the duration gap of banks is unaffected by how sensitive deposits are to interest rate changes. 

Suppose there are two ratings categories: A and B, along with default. The ratings-migration probabilities look like this for a B-rated loan:   Rating in 1 year Probability A 0.07 B 0.92 Default 0.01     The yield on A rated loans is 4%; the yield on B rated loans is 5%. All term structures are flat (i.e. forward rates equal spot rates). A loan in default pays off 40% of its face value (e.g. $40) You have one loan in your portfolio, B-rated, 3-year, 5% coupon (paid annually), with $100 face value.   Compute next year’s expected value for the loan.