Strategies That Define Probability Mixtures Over All or Some of the Pure

question 25

Multiple Choice

Strategies that define probability mixtures over all or some of the pure strategies in the game are called

• A) mixed strategies
• B) super-pure strategies
• C) gambles

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Definitions:

Required Rate of Return

The required rate of return is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Striking Price

The predetermined price at which the holder of an option can buy or sell the underlying security.

Cumulative Feature

A characteristic of certain preferred stocks or securities where unpaid dividends accumulate and must be paid before dividends to common stockholders.