An arbitrage opportunity exists if an investor can construct a __________ investment portfolio that will yield a sure profit.
A) positive
B) negative
C) zero
D) All of the options.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

An arbitrage opportunity exists if an investor can construct a zero investment portfolio (meaning no net outlay of funds) that will yield a sure profit. This involves taking advantage of price differences in different markets or forms without risk.

An Arbitrage Opportunity Exists If an Investor Can Construct a __________