No Arbitrage Is Equivalent to the Idea That All Risk-Free

question 46

Multiple Choice

No arbitrage is equivalent to the idea that all risk-free investments should offer investors ________.

• A) zero return
• B) the same return
• C) positive returns
• D) negative returns

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Definitions:

Population Mean

The average of a set of characteristics, measurements, or counts in the entire population being studied.

SRS

Simple Random Sampling, a fundamental sampling technique where each member of the population has an equal chance of being selected.

Margin Error

The highest degree to which the outcomes from a sample are anticipated to vary from the actual value of the population.

Sample Size

Refers to the number of observations or data points that are collected and used for statistical analysis.