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The bs-option pricing mode

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Reference no: EM13293122

Please read the attached article and answer the following questions:

1. State the assumptions of the CAPM, MM Propositions, and the BS-Option Pricing Model.

2. Discuss these assumptions in the context of "Noise" as described by Fischer Black. In particular, discuss market efficiency and the rationality of individuals. Black's section on financial markets is most critical.

Reference no: EM13293122

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