The Concept of Arbitrage Is Very Important to the Understanding

The concept of arbitrage is very important to the understanding of financial markets since

A) it can explain why U.S. government securities are much more desirable than securities from some foreign governments
B) it explains why we are unable to predict future stock market swings
C) it explains why the stock market reacts slowly to new information
D) it says that, in equilibrium, asset prices will make financial investors equally willing to buy or sell an asset
E) it says that future behavior of stock prices can be extrapolated from past behavior