Risk-Neutral Probabilities Are Also Known as All of the Following,EXCEPT

question 36

Multiple Choice

Risk-neutral probabilities are also known as all of the following,EXCEPT:

• A)contingent probabilities.
• B)state-contingent prices.
• C)martingale prices.
• D)state prices.

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Definitions:

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input, holding all other inputs constant.

Equilibrium Value

The price or point at which the quantity of a product demanded equals the quantity supplied, leading to market stability.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, holding all other inputs constant.

Factor Market

A marketplace for the services of a factor of production, such as labor, capital, or land, where these are bought and sold.