Which of the Following Statements Regarding Arbitrage Is Not Correct

question 54

Multiple Choice

Which of the following statements regarding arbitrage is not correct?

• A) Any situation in which it is possible to make a profit without taking any risk is known as an arbitrage opportunity.
• B) Any situation in which it is possible to make a profit without making any investment is known as an arbitrage opportunity.
• C) We call a competitive market in which there are no arbitrage opportunities an arbitrage market.
• D) The practice of buying and selling equivalent goods in different markets to take advantage of a price difference is known as arbitrage.

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Definitions:

Armed Robberies

The act of stealing from someone or somewhere using weapons and force.

Organized Crime

Highly structured criminal networks engaged in illegal activities for profit, often involving extortion, drug trafficking, and corruption.

Yakuza

An organized crime syndicate originating in Japan, known for its strict codes of conduct and hierarchical structure.

Organized Crime

Structured groups engaged in illegal activities, such as drug trafficking, theft, and extortion, often with a hierarchical system of leadership.