In the APT Model the Idea of Riskless Arbitrage Is

question 86

Multiple Choice

In the APT model the idea of riskless arbitrage is to assemble a portfolio that

• A) requires some initial wealth, will bear no risk, and still earn a profit.
• B) requires no initial wealth, will bear no risk, and still earn a profit.
• C) requires no initial wealth, will bear no systematic risk, and still earn a profit.
• D) requires no initial wealth, will bear no unsystematic risk, and still earn a profit.
• E) requires some initial wealth, will bear no systematic risk, and still earn a profit.

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