Which of the Below Statements Is TRUE

question 40

Multiple Choice

Which of the below statements is TRUE?

• A) In modeling the stock market, the interactions of borrowers are modeled.
• B) The computer simulations of mathematical models have been found to generate thin tails and other statistical characteristics that have been observed in real-world financial markets.
• C) Support for return distributions not being well characterized by a normal distribution comes from the collaborative efforts of economists and physicists who have developed mathematical models of the stock market.
• D) Mathematical models are by their nature accurate replications of real-world financial markets providing sufficient structure to analyze return distributions.

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Definitions:

Mutually Exclusive

A condition in which two or more events cannot occur at the same time.

Jointly Exhaustive

This term refers to a set of possibilities or conditions that completely covers all potential outcomes or scenarios, leaving no option unaccounted for.

Abstract

Existing in thought or as an idea but not having a physical or concrete existence.

Concepts

Cognitive units of meaning that are abstract, generalized ideas or categories representing objects, qualities, or relations.