Perform the Multiplication. -

question 15

Multiple Choice

Perform the multiplication.
-

• A)0.0004
• B)0.00004
• C)0.04
• D)0.004

---

Definitions:

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another market to profit from the price difference.

Risk-Free Rate

The estimated rate of profit from an investment void of risk, usually showcased by the return on government securities.

Expected Return

The projected average return on an investment, considering all possible outcomes weighted by their respective probabilities.

Risk Premiums

The additional return expected from an investment when compared to a risk-free asset, compensating investors for bearing higher risk.