The Law of One Price States That

question 12

Multiple Choice

The law of one price states that

• A)Similar but not identical assets will trade in the same market.
• B)Similar but not identical portfolios will have the same risk.
• C)Portfolios with different cashflows cannot have the same price.
• D)Portfolios with identical cashflows will have the same price.

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Definitions:

Purchasing Intentions

The likelihood or propensity of consumers to buy a product or service in the near future.

Attitudes of Others

The perceptions, beliefs, or feelings held by individuals apart from oneself, which can influence interpersonal interactions and dynamics.

Perceived Risk

The potential that a consumer sees in a purchase decision that could lead to a loss or negative outcome, influencing their buying behavior.

Purchase Satisfaction

The level of contentment of a customer with the experience and outcomes of buying a product or service.