A normal market where there are no arbitrage opportunities can be considered as
A) a perfect market.
B) a fair market.
C) a competitive market.
D) a free market.

Question

Quizplus · Accepted Answer

In a perfect market, there are no arbitrage opportunities because prices reflect all available information and there are no barriers to entry or exit for market participants. Therefore, a normal market without arbitrage opportunities can be considered a perfect market. The other options (fair, competitive, and free market) do not necessarily imply the absence of arbitrage opportunities.

A Normal Market Where There Are No Arbitrage Opportunities Can