Asset(資產)Markets(ppt 15頁)(英文)

An asset is a commodity that provides a flow of services over time.
E.g. a house, or a computer.
A financial asset provides a flow of money over time -- a security.
Typically asset values are uncertain. Incorporating uncertainty is difficult at this stage so we will instead study assets assuming that we can see the future with perfect certainty.
Arbitrage is trading for profit in commodities which are not used for consumption.
E.g. buying and selling stocks, bonds, or stamps.
No uncertainty ? all profit opportunities will be found. What does this imply for prices over time?

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