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Which of the Below Statements Is TRUE

Question 40

Multiple Choice

Which of the below statements is TRUE?


A) In modeling the stock market, the interactions of borrowers are modeled.
B) The computer simulations of mathematical models have been found to generate thin tails and other statistical characteristics that have been observed in real-world financial markets.
C) Support for return distributions not being well characterized by a normal distribution comes from the collaborative efforts of economists and physicists who have developed mathematical models of the stock market.
D) Mathematical models are by their nature accurate replications of real-world financial markets providing sufficient structure to analyze return distributions.

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