Consider Using a Deck of Cards as a Way to Visualize

question 46

Multiple Choice

Consider using a deck of cards as a way to visualize a shuffle algorithm. When two cards shuffle their position, what has to happen to the size of the array holding them?

• A) it increases by one
• B) it decreases by one
• C) it stays the same
• D) it increases by two

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Definitions:

Security Mispricing

The phenomenon when a security (stock, bond, etc.) is priced above or below its intrinsic value.

Risk-Free

Pertaining to an investment with guaranteed returns and negligible risk of financial loss.

Economic Profits

Profits or losses calculated by considering both explicit costs, such as direct expenses, and implicit costs, like opportunity costs.

Arbitrage Opportunity

The opportunity to buy an asset at a low price in one market and sell it for a higher price in another, exploiting price discrepancies.