The process by which investors seek to profit by simultaneously selling an asset with a lower rate of return and buying an otherwise identical asset with a higher rate of return is known as
A)hedging the market.
B)passive fund management.
C)arbitrage.
D)portfolio balancing.

Question

Quizplus · Accepted Answer

Arbitrage is the practice of taking advantage of a price difference between two or more markets by simultaneously buying and selling an asset to profit from the imbalance.

The Process by Which Investors Seek to Profit by Simultaneously