Arbitrage Equalizes Rates of Return Across Similar Investments Because

question 80

Multiple Choice

Arbitrage equalizes rates of return across similar investments because

• A) arbitrage also equalizes the prices of the assets.
• B) investors prefer diversity.
• C) investors will want to replace lower rate of return assets with those generating higher rates of return.
• D) investors will want to replace higher rate of return assets with those generating lower rates of return.

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Definitions:

Organic Structures

Flexible and adaptive organizational structures that are characterized by decentralized authority, low levels of formalization, and high levels of horizontal communication.

Organisational Design

The process of structuring an organization's roles, responsibilities, and systems to achieve its goals and strategy effectively.

Loose-Tight Structure

An organizational approach that combines flexible, adaptive elements with strict, controlled processes to manage complexity.

Production Efficiency

The optimization of production processes to produce goods or services in the most cost-effective and time-efficient manner.