Concerning efficient financial( including derivative) markets, the most appropriate description is that()
A: it is often possible to earn abnormal returns.
B: the law of one price holds only in the academic literature.
C: arbitrage opportunities rarely exist and are quickly eliminated.
A: it is often possible to earn abnormal returns.
B: the law of one price holds only in the academic literature.
C: arbitrage opportunities rarely exist and are quickly eliminated.
举一反三
- The _____ tells us that the expected return on a risky asset depends only on that asset's nondiversifiable risk A: efficient markets hypothesis B: systematic risk principle C: open markets theorem D: law of one price
- One reason is that financial markets ______ quickly to policy changes. A: actuate B: react C: activate D: reactivate
- The presence of _________ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.
- Factors<br/>that lead to worsening conditions in financial markets include____? A: declining interest rates. B: anticipated increases in the price level. C: bank panics. D: only A and C of the above.
- The traditional view of the production process is that capital is subject to A: Constant returns. B: Increasing returns. C: Diminishing returns. D: Diminishing returns for low levels of capital, and increasing returns for high levels of capital.