The ________, the Greater the Probability of the Market Maker

question 31

Multiple Choice

The ________, the greater the probability of the market maker ________ in excess of a stated bound between the time of buying and reselling the financial asset.

• A) greater the variability; incurring a loss
• B) lesser the variability; incurring a loss
• C) lesser the variability; incurring a large gain
• D) greater the variability; incurring no loss or gain

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Definitions:

Motivated Reasoning

A cognitive process where individuals form and cling to beliefs despite contrary evidence, driven by emotion or desire rather than objective evaluation.

Evidence

Information or facts that are used to support a conclusion, belief, or proposition.

Beliefs

A conviction or acceptance that something is true or exists.

Early Payment Discount

A reduction in the amount due for goods or services offered by a seller to buyers who pay their bill before a specified date.