-The t distribution can be used when finding a confidence interval for the population mean with a small sample anytime the population standard deviation is unknown.
Definitions:
Arbitrage
The practice of buying and selling the same asset in different markets to profit from price discrepancies.
Law Of One Price
An economic theory that suggests the price of identical goods in different markets must be the same after exchange rate adjustments.
Mispricing
An occurrence in financial markets where the price of an asset does not reflect its true value, due to various factors like misinformation or market inefficiency.
Risky-Asset Portfolio
A collection of investments that have a higher risk of loss but also offer the potential for higher returns.
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