Which of the Following Statements Regarding Arbitrage Is the Most

question 79

Multiple Choice

Which of the following statements regarding arbitrage is the most 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:

Categorical Data

Data that represent characteristics and can be divided into groups or categories.

Quantitative Data

Numerical data that can be measured or counted and used for mathematical calculations and statistical analysis.

Sample Mean

The average value of a set of observations taken from a sample.

Population

All the members or elements that are examined as part of a statistical study.