Which of the Following Is NOT a Situation Where a Trader

question 36

Multiple Choice

Which of the following is NOT a situation where a trader is able to identify positive NPV trading opportunities in the securities markets?

• A)An investor who has access to information known only to a few investors
• B)An investor who has lower trading costs than other market participants
• C)An investor who gets up really early in the morning so he can be the first to read and act upon the information contained in that day's Wall Street Journal
• D)An investor who has expertise in a highly complicated area for which a company has just released information

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Process Simulation

A technique used to model, analyze, and predict the behavior of processes, often through computer software, to enhance efficiency and decision-making.

Deterministic Arrival

Describes a process where the timing of arrivals in a system can be exactly predicted or scheduled, with no randomness involved.

Reneged

In queuing theory, it refers to a customer who enters a waiting line but decides to leave before being served.