Theoretically, Stock Options Are Granted to Employees So That the Employees

question 71

True/False

Theoretically, stock options are granted to employees so that the employees will make decisions that benefit shareholders.

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Definitions:

Portfolio Value

The total worth of all the financial assets held in an investment portfolio.

Statistical Arbitrage

A strategy that uses statistical and computational techniques to exploit inefficiencies or price differences in financial markets, often involving complex models and high-frequency trading.

Market Neutral

An investment strategy that seeks to avoid some forms of market risk by taking matching long and short positions in different stocks to increase the potential for absolute returns.

Relative Value

A measurement that assesses the worth of an asset by comparing it with the value of similar assets.