Some Trolls Are Not Alligators

question 95

Multiple Choice

Some trolls are not alligators. Therefore, some alligators are not trolls.

• A) Invalid; illicit contraposition.
• B) Invalid; illicit subcontrary.
• C) Invalid; illicit conversion.
• D) Invalid; existential fallacy.
• E) Valid; no fallacy.

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Definitions:

No-Arbitrage Condition

A theoretical situation where there is no possibility of risk-free profits – prices in the financial markets should exclude the possibility of arbitrage opportunities.

Risk-Return Dominance

A principle stating that an investment or portfolio is more desirable if it has a higher expected return for a given level of risk, or lower risk for a given level of expected return.

Market Equilibrium

Market Equilibrium is a condition in a market where the quantity demanded by consumers equals the quantity supplied by producers, resulting in stable prices.

Factor Risk

The risk associated with a specific factor or factors that can affect the performance of an investment portfolio, unrelated to broader market movements.