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4 Written questions

4 Multiple choice questions

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


  3. firm-specific riskthe reduction risk achieved by replacing a single risk with a large number of smaller, unrelated risks


  4. future valuethe amount of money today that would be needed using prevailing interesting rates to produce a given future amount of money (1+r)^n = 100


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