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:

Specifying Dependencies

The process of identifying and documenting the relationships and dependences between tasks, projects, or components.

Manufacturing Plant

A facility used for industrial production processes, where goods are produced or assembled from raw materials.

Temporal Relationships

The sequential or chronological order in which events occur or are related to one another.

PERT Chart

A tool for managing projects that helps plan, arrange, and oversee tasks involved in a project.