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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