In the Black-Scholes-Merton Model,stock Prices Are Assumed to Behave Randomly

question 30

True/False

In the Black-Scholes-Merton model,stock prices are assumed to behave randomly.

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Definitions:

Equal-variances Test

A statistical method used to assess whether two or more populations have equal variances.

Student T-distributed

A probability distribution used in statistics when the sample size is small and the population standard deviation is unknown.

Degrees Of Freedom

The number of independent values or quantities which can vary in the analysis of statistical parameters.

Independent Samples

Samples selected from the same or different populations, but without any matching or pairing on characteristics.