Dodd-Frank Addressed Many of the Issues That Led to the Financial

question 25

Multiple Choice

Dodd-Frank addressed many of the issues that led to the financial crisis. Which of the following was NOT addressed by Dodd-Frank regulations?

• A)stricter consumer protection laws
• B)privately owned,government-sponsored enterprises (GSEs)such as Fannie Mae and Freddie Mac
• C)resolution authority over the large financial institutions
• D)higher requirements on firms dealing in derivatives

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Definitions:

Pricing Model

A theoretical approach used to determine the price of a financial instrument or the valuation of a company.

Risk-Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, serving as a benchmark for measuring financial instruments' risk.

Arbitrage Opportunities

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another market, earning a risk-free profit.

Expected Returns

The average return an investor anticipates on an investment, based on historical data, projected performance, and market analysis.