Buying and Selling in More Than One Market to Make

question 29

Multiple Choice

Buying and selling in more than one market to make a riskless profit is called

• A) profit maximization.
• B) arbitrage.
• C) international trading.
• D) cannot be determined from the above information.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at fixed prices.

Expected Percentage Return

The predicted return on an investment, expressed as a percentage of the initial investment.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean of the dataset.

Weighted Average Return

A return measure that considers the proportional relevance of each component return in the calculation.