The Black-Scholes Model Assumes That Stock Price Movements Can Be

question 35

Multiple Choice

The Black-Scholes model assumes that stock price movements can be described by

• A) geometric moving averages.
• B) arithmetic moving averages.
• C) regression towards the mean.
• D) geometric Brownian motion.
• E) stochastic time lags.

---

Definitions:

Nature

The inherent features of something or the physical world and everything in it, including plants, animals, the landscape, and other features and products of the earth.

Nurture

The influence of environmental factors and care given to the development and growth of an individual.

Behavioral Genetics

The field of study that examines the role of genetic and environmental influences on behaviors.

Genetic Counseling

A professional service that provides individuals and families with information on the genetic aspects of illnesses, inheritance patterns, and risks.