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:

New Product

A product that has been recently developed or introduced to the market.

Process

A series of actions or steps taken in order to achieve a particular end.

Private Owner

An individual or entity that exclusively owns the rights to a property, business, or asset, without governmental sharing or interference.

Prohibited

Forbidden by law, rules, or other forms of authority.