In the Simple Model of Financial Asset Model Arbitrage We

question 4

Multiple Choice

In the simple model of financial asset model arbitrage we assume that:

• A)futures markets are perfectly efficient.
• B)there is no uncertainty about stock prices.
• C)stock prices follow a random walk.
• D)the risk premium does not equal zero.
• E)capital gains are zero.

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Assembly Job

Employment that involves putting together components or parts, often in a manufacturing or production line setting.

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A tendency to be more likely to experience accidents than the average person.

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The tendency to see the positive side of things and expect the best possible outcome.

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The act of leaving one's job or career, often due to reaching a certain age, and transitioning into a phase of life with potentially reduced involvement in professional activities.