The notion that equivalent securities should sell for the same price is the
A) equivalence theorem.
B) law of one price.
C) law of large numbers.
D) central limit theorem.

Question

Quizplus · Accepted Answer

The law of one price states that in an efficient market, all identical goods must have only one price. This principle underlies the concept that equivalent securities should sell for the same price, ensuring no arbitrage opportunities exist.

The Notion That Equivalent Securities Should Sell for the Same