Which of the Following Is an Assumption of the Arbitrage

question 3

Multiple Choice

Which of the following is an assumption of the arbitrage pricing theory?

• A)There are always arbitrage opportunities when multiple markets exist.
• B)All the securities in the portfolio are perfectly positively correlated.
• C)Returns can be described by factor models.
• D)The securities in the portfolio are perfectly negatively correlated.

Identify and describe different kinds of jargon and their appropriateness in business communication.

Define and distinguish between active voice and passive voice in writing.

Apply unconventional sentence starters like "and" or "but" effectively in writing.

Recognize key elements to look for when revising a document.

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Definitions:

Functional Analysis

A behavioral assessment technique that seeks to understand the causes and consequences of specific behaviors.

Antecedents

Factors or conditions in a person's background or environment that precede and contribute to their patterns of behavior.

Substance Use Behaviors

Patterns or practices of using drugs, alcohol, or other substances, whether recreational or problematic.

Harm Reduction

Strategies and policies designed to minimize the negative health, social and legal impacts associated with drug use, sexual activity, and other harmful behaviors.