The Rarity Assumption Specifies That P Is Usually More Informative

question 6

Multiple Choice

The rarity assumption specifies that p is usually more informative than not p because

• A) p is usually more common than not p
• B) p is usually presented before not p
• C) p is usually presented after not p
• D) p is usually less common than not p

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Definitions:

Interest Rate Parity

A financial theory stating that the difference in interest rates between two countries is equal to the difference between the forward and spot exchange rates of their currencies.

Nominal Risk-Free

The rate of return on an investment with no risk of financial loss, not adjusted for inflation.

Export Development Canada

A Canadian government agency that provides financing, insurance, and bonding services to Canadian exporters and investors.

Canadian Exports

Goods or services sold by Canada to other countries.