Arbitrage Is the Process by Which Investors Simultaneously Sell

question 173

Multiple Choice

Arbitrage is the process by which investors simultaneously sell

• A) assets with higher rates of return and buy otherwise identical assets with lower rates of return.
• B) assets with lower rates of return and buy otherwise identical assets with higher rates of return.
• C) riskier assets and buy less risky assets.
• D) less risky assets and buy riskier assets.

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