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4 Written questions

4 Multiple choice questions

  1. the path of a variable whose changes are impossible to predict
  2. a dislike of uncertainty
  3. the field that studies how people make decisions regarding the allocation of resources over time and the handling of risk
  4. the theory that asset prices reflect all publicly available information about the value of an asset

4 True/False questions

  1. present valuethe amount of money in the future that an amount of money today will yield, given prevailing interest rates x/(1-r)^n

          

  2. firm-specific riskrisk that affects all companies in the stock market

          

  3. informational efficiencythe description of asset prices that rationally reflect all available information

          

  4. future valuethe amount of money in the future that an amount of money today will yield, given prevailing interest rates x/(1-r)^n

          

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