The buying and selling activities that tend to equalize the rates of return on identical or nearly identical assets is called
A)beta.
B)risk.
C)arbitrage.
D)diversification.

Question

Quizplus · Accepted Answer

Arbitrage involves buying and selling identical or nearly identical assets to take advantage of price differences, which tends to equalize the rates of return on those assets.

The Buying and Selling Activities That Tend to Equalize the Rates