The buying and selling of equally risky assets to ensure equal returns is called:
A) risk exchange.
B) default swap.
C) arbitrage.
D) crowding out.

Question

Quizplus · Accepted Answer

The buying and selling of equally risky assets to ensure equal returns is called arbitrage. This involves taking advantage of price differences between similar assets in different markets to make a profit with no risk.

The Buying and Selling of Equally Risky Assets to Ensure