Which of Madison's Statement(s) Regarding Equilibrium and Arbitrage-Free Term Structure

question 36

Multiple Choice

Which of Madison's statement(s) regarding equilibrium and arbitrage-free term structure models is incorrect?

• A) Statement 1 only
• B) Statement 2 only
• C) both Statement 1 and Statement 2

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A characteristic of systems or processes that behave in a predictable manner, where the same input always results in the same output.

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