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Which of the following is a disadvantage of linking an object?
Multifactor Models
Financial models that evaluate assets by taking into account multiple economic and statistical factors to explain market phenomena and asset returns.
Risk-free Rate
The anticipated earnings on an investment considered free from financial risk, usually related to sovereign bonds.
Arbitrage Opportunity
This refers to the chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another, realizing a profit without risk.
Expected Return
The weighted average of all possible returns from an investment, factoring in the probabilities of each outcome.
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