Which one of the following is NOT an accurate statement about why an investor would want to form an arbitrage portfolio? APT portfolios
A) provide an opportunity to increase expected returns without increasing risk
B) are attractive to risk-averse investors
C) require risk free borrowing to be financed
D) are self-financing

Question

Quizplus · Accepted Answer

APT portfolios do not require risk-free borrowing. They are self-financing and do provide an opportunity to increase expected returns without increasing risk, making them attractive to risk-averse investors.

Which One of the Following Is NOT an Accurate Statement