The Buying and Selling Activities That Tend to Equalize the Rates

question 125

Multiple Choice

The buying and selling activities that tend to equalize the rates of return on identical or nearly identical assets is called:

• A) Beta
• B) Risk
• C) Arbitrage
• D) Diversification

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Definitions:

Handwritten Terms

Handwritten Terms are terms or conditions written by hand in a document, which can be legally binding if incorporated into a written agreement and understood by all parties.

Bearer Paper

A type of negotiable instrument that is not registered to a specific owner, allowing the holder or bearer of the document to claim the value of the instrument.

Order Paper

A document in legislative bodies listing the order in which bills will be debated or considered.

Promissory Note

A written, legally binding document in which one party promises to pay another a defined sum of money at a specified time or upon demand.