Arbitrage Is

question 2

Multiple Choice

Arbitrage is:

• A) a zero initial wealth trading strategy that has a likelihood of making profits without risk of a loss
• B) a way of resolving disputes
• C) a risky way of making money for arbitrators
• D) a zero-investment trading strategy in which the likelihood of portfolio gain overwhelms the likelihood of loss
• E) None of these answers are correct.

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