Risk Neutral Probabilities Are Also Known as All of the Following

question 7

Multiple Choice

Risk neutral probabilities are also known as all of the following except

• A) contingent probabilities.
• B) state-contingent prices.
• C) martingale prices.
• D) state prices.

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Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Abraham Maslow's Hierarchy

A theory in psychology, proposed by Abraham Maslow, which comprises a five-tier model of human needs, depicted as hierarchical levels within a pyramid.

Safety Needs

Fundamental requirements for security and protection from physical and emotional harm, as one of the levels in Maslow's hierarchy of needs.

Deficit Principle

A concept in motivation that suggests individuals are motivated to satisfy deprived needs, or deficits, to maintain a base level of comfort.