Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)No arbitrage opportunities will exist until the underlying prices diverge by more than the amount of the transaction costs.
• B)Because you will generally pay a slightly lower price when you buy a security (the ask price)than you receive when you sell (the bid price)you will pay the bid-ask spread.
• C)The price of a security should equal the present value of its cash flows,up to the transaction costs of trading the security and the cash flows.
• D)In most markets,you must pay transactions costs to trade securities.

---

Definitions:

HR Department

A division within a company that is focused on activities related to the management of its employees, including hiring, training, benefits, and employee relations.

Design Logos

The process of creating visual symbols or marks that represent a company, brand, or product.

Email Address

A digital identifier that allows individuals to send and receive electronic messages via the internet.

Technologically Lagging

refers to entities or individuals that are behind in adopting new technologies or innovation, resulting in potentially reduced efficiency or competitiveness.