Arbitrage Is ________

question 89

Multiple Choice

Arbitrage is ________.

• A) an example of the law of one price
• B) the creation of riskless profits made possible by relative mispricing among securities
• C) a common opportunity in modern markets
• D) an example of a risky trading strategy based on market forecasting

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Definitions:

High Machs

Individuals characterized by a high Machiavellianism trait, often noted for manipulation and a strategic mindset in interpersonal relationships.

Sabotage

Sabotage involves deliberate actions aimed at damaging, disrupting, or subverting systems, processes, or organizations, often for personal gain or to make a political or social statement.

Theft

The act of stealing; the wrongful taking and carrying away of the personal goods or property of another.

Ability to Understand

The capacity to grasp and comprehend information, situations, or perspectives accurately and effectively.