Which of the Following Statements Regarding the Law of One

question 47

Multiple Choice

Which of the following statements regarding the Law of One Price is incorrect?

• A) At any point in time, the price of two equivalent goods trading in different competitive markets will be the same.
• B) One useful consequence of the Law of One Price is that when evaluating costs and benefits to compute a net present value, we can use any competitive price to determine a cash value, without checking the price in all possible markets.
• C) If equivalent goods or securities trade simultaneously in different competitive markets, then they will trade for the same price in both markets.
• D) An important property of the Law of One Price is that it holds even in markets where arbitrage is not possible.

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Definitions:

Nutritional Status

An assessment of the body's dietary intake and nutrient levels, crucial for maintaining health and preventing diseases.

Prealbumin

A protein found in the blood that is an indicator of nutritional status and can help assess the risk of malnutrition.

Albumin

A protein produced by the liver, circulating in the bloodstream, and playing a key role in maintaining blood volume and pressure.

Triceps Skinfold

A measure of the thickness of a fold of skin and underlying fat on the back of the upper arm, used to estimate body fat.