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

---

Definitions:

Incremental Cash Flows

The additional cash flow a company receives from undertaking a new project, considering only revenues and expenses directly related to the project.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Privately Owned

A business that is owned by private individuals or entities and not by the government or public investors.

Shares Of Stock

Units of ownership in a corporation that give shareholders a claim on part of the corporation's earnings and assets.