If You Wanted to Take Advantage of a Risk-Free Arbitrage

question 60

Multiple Choice

If you wanted to take advantage of a risk-free arbitrage opportunity,you should take a short position in _________ and a long position in an equally weighted portfolio of _______.

• A)A, B and C
• B)B, A and C
• C)C, A and B
• D)A and B, C
• E)none of the above

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Definitions:

Care

The process of giving attention and support to the needs and well-being of others, including customers, patients, or loved ones.

Electronic Communication

The transfer of information using electronic media such as email, social media, and messaging services.

Government Restrictions

Regulations and policies imposed by governmental bodies aimed at controlling or limiting certain activities or practices within a country.

Mass Production

The large-scale manufacturing of goods using assembly line techniques and machinery, aimed at producing large quantities of standardized products efficiently.