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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