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There Are Conditions Necessary That a Market Has to Have

question 112

Multiple Choice

There are conditions necessary that a market has to have in order to be able to segment it properly.The item below which is not necessary is _______.


Definitions:

Law Of One Price

An economic theory that suggests the price of identical goods in different markets must be the same after exchange rate adjustments.

Mispricing

An occurrence in financial markets where the price of an asset does not reflect its true value, due to various factors like misinformation or market inefficiency.

Risky-Asset Portfolio

A collection of investments that have a higher risk of loss but also offer the potential for higher returns.

Market Rate

The prevailing interest rate available in the marketplace.

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