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:
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Q16: In macroeconomics investing includes purchases of:
A)roads.
B)buildings.
C)stocks and
Q17: The equation Q18: In the equation Q19: If R is the real interest rate;w Q20: During recessions _ disproportionately to _. Q22: For the following questions use Figure 16.1 Q29: When discussing arbitrage in the stock market, Q31: The investment share of GDP has a Q50: If the savings interest rate rises, to Q52: The payment the owner of a stock
A)taxes;income
B)consumption falls;government
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