Solved

In the Simple Model of Financial Asset Model Arbitrage We

Question 4

Multiple Choice

In the simple model of financial asset model arbitrage we assume that:


A) futures markets are perfectly efficient.
B) there is no uncertainty about stock prices.
C) stock prices follow a random walk.
D) the risk premium does not equal zero.
E) capital gains are zero.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions