Which One of These Statements Is Correct

question 20

Multiple Choice

Which one of these statements is correct?

• A)Irrationality may be related across investors.
• B)Arbitrage is risk-free.
• C)Irrationality always cancels out among a group of investors.
• D)Investors are always rational.
• E)Arbitrage eliminates all market inefficiencies.

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Definitions:

Inversely Proportional

A relationship between two variables where one increases as the other decreases.

Pressure of Gas

The force that the gas exerts on the walls of its container; it depends on the volume, temperature, and number of gas molecules.

Volume of Container

The amount of space that a container can hold, usually measured in liters or cubic meters.

Blood CO2 Levels

The concentration of carbon dioxide in the blood, an important indicator of respiratory function.