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.

---

Definitions:

Employee Involvement

Programs and practices that encourage employees to contribute ideas and participate in decisions that affect their work and the organization.

Reengineering

The radical redesign of business processes to achieve dramatic improvements in productivity, cycle times, and quality.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time or implementing significant process changes.

Workplace Flexibility

Policies and practices that allow employees to have more control over their working hours, location, and environment.