The exploitation of security mispricing in such a way that risk-free economic profits may be earned is called
A) arbitrage.
B) capital-asset pricing.
C) factoring.
D) fundamental analysis.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

Arbitrage involves taking advantage of price differences in different markets or forms of a security to make a risk-free profit, which aligns with the exploitation of security mispricing for economic gain.

The Exploitation of Security Mispricing in Such a Way That