Write the Binomial Expansion of the Expression $( a - b ) ^ { 6 }$

question 536

Multiple Choice

Write the binomial expansion of the expression.
- $( a - b ) ^ { 6 }$

• A) \(a ^ { 6 } - 6 a ^ { 5 } b - 15 a ^ { 4 } b ^ { 2 } - 20 a ^ { 3 } b ^ { 3 } - 15 a ^ { 2 } b ^ { 4 } - 6 a b ^ { 5 } - b ^ { 6 }\)
• B) \(a^{ 6} - 6 a ^ { 5 } b + 15 a ^ { 4 } b ^ { 2 } - 20 a ^ { 3 } b ^ { 3 } + 15 a ^ { 2 } b ^ { 4 } - 6 a b ^ { 5 } + b ^ { 6 }\)
• C) \(a ^ { 6 } + 6 a ^ { 5 } b + 15 a ^ { 4 } b ^ { 2 } + 20 a ^ { 3 } b ^ { 3 } + 15 a ^ { 2 } b ^ { 4 } + 6 a b ^ { 5 } + b ^ { 6 }\)
• D) \(- a ^ { 6 } + 6 a ^ { 5 } b - 15 a ^ { 4 } b ^ { 2 } + 20 a ^ { 3 } b ^ { 3 } - 15 a ^ { 2 } b ^ { 4 } + 6 a b ^ { 5 } - b ^ { 6 }\)

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Definitions:

Arbitrage Opportunity

A situation where a trader can make a profit from the price difference of an asset in different markets or forms without taking significant risk.

Risk-free Rate

The theoretical return of an investment with zero risk, often represented by the yield on government bonds.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates greater volatility than the market, while a beta below 1 suggests less.

Average Returns

The arithmetic mean of the historical returns of an investment, often used as a general indication of its past performance.