In a Competitive Financial Market, the Equilibrium Price of an Asset

question 88

Multiple Choice

In a competitive financial market, the equilibrium price of an asset will equal the

• A)present value of the asset.
• B)issue price of the asset.
• C)future value of the asset multiplied by the interest rate.
• D)sum of present value of the asset multiplied by the interest rate.
• E)future value of the asset.

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Definitions:

Visual Cliff

An experimental apparatus designed to give the illusion of a dangerous drop-off, used to study depth perception and fear of heights in infants.

Ambiguous

Open to more than one interpretation or having a double meaning.

External Locus

A belief that one's life events are largely influenced by external forces or the environment, as opposed to internal factors (contrast with internal locus of control).

Conscientiousness

A personality trait characterized by organization, responsibility, and thoroughness.