The Table Above Shows the Payoff Matrix for a Prisoners

question 136

Multiple Choice

The table above shows the payoff matrix for a prisoners' dilemma game. The Nash equilibrium is that

• A) both prisoners confess.
• B) both prisoners do not confess.
• C) prisoner A confesses while prisoner B does not confess.
• D) prisoner A does not confess while prisoner B confesses.

---

Definitions:

Market Risk

The risk of losses in financial markets due to movements in market prices, affecting a wide range of assets uniformly.

Behavioural Finance

A field of study that combines psychological theories with conventional economics to explain why people make irrational financial decisions.

Securities Mispricing

A situation where a financial security is valued either above or below its true intrinsic value due to market inefficiencies, creating investment opportunities.

Beta

A metric for assessing the degree of systematic risk associated with a security or portfolio relative to the overall market.