For Heavily Traded Assets Like Stocks and Bonds, Arbitrage

question 94

Multiple Choice

For heavily traded assets like stocks and bonds, arbitrage

• A) will equalize rates of return across all stocks and bonds.
• B) will drive up rates of return on all assets.
• C) is a lengthy process because of the large volume of transactions.
• D) will often equalize rates of return among similar assets within minutes.

---

Definitions:

Inland Freshwater Wetland

Wetlands located away from coastal areas, characterized by fresh water and supporting diverse plant and animal life, important for flood control and water purification.

Estuary

A coastal area where fresh water from rivers and streams meets and mixes with salt water from the ocean, creating diverse and productive ecosystems.

Coral Reefs

Underwater ecosystems characterized by reef-building corals, which are colonies of tiny living animals found in marine waters that contain few nutrients.

Biological Indicators

Organisms or components of organisms that are used to assess the health of a natural ecosystem or the presence of pollutants.