Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)No arbitrage opportunities will exist until the underlying prices diverge by more than the amount of the transaction costs.
• B)Because you will generally pay a slightly lower price when you buy a security (the ask price)than you receive when you sell (the bid price)you will pay the bid-ask spread.
• C)The price of a security should equal the present value of its cash flows,up to the transaction costs of trading the security and the cash flows.
• D)In most markets,you must pay transactions costs to trade securities.

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Definitions:

Client-Centered Therapy

A form of psychotherapy developed by Carl Rogers, focusing on the individual's self-perceived world and unconditional positive regard.

Nonjudgmental Acceptance

Embracing individuals' experiences and feelings without assessing them as good or bad.

Unconditional Positive Regard

A concept in client-centered therapy implying complete acceptance and support of a person no matter what they say or do.

Empathy

The ability to understand and share the feelings of another person from their perspective.