Arbitrage Occurs When

question 31

Multiple Choice

Arbitrage occurs when

• A)bond and stock rates of return equalize.
• B)investors try to profit from selling a lower rate of return asset to buy one that is nearly identical but with a higher rate of return.
• C)rates of return across all stocks equalize.
• D)investors move from lower to higher rate of return assets, regardless of the comparability of the assets.

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Definitions:

Neurons

Specialized neurons in the nervous system that communicate information via electrical and chemical signals.

Resting Potential

The electrical potential of a neuron when not stimulated or involved in passage of an impulse, typically around -70mV.

Axon

a part of a neuron that conducts impulses away from the cell body towards other neurons or muscles.

Electrical Charge

A fundamental property of matter that exists in either a positive or negative state and causes it to experience a force when placed in an electromagnetic field.