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Basic Question 6 of 7
Which of the following is LEAST LIKELY to be a result of arbitrage?
B. Law of one price
C. Earning a return in excess of return appropriate for the assumed risk
A. More efficient markets
B. Law of one price
C. Earning a return in excess of return appropriate for the assumed risk
User Contributed Comments 1
| User | Comment |
|---|---|
| cgbobmpo | So you mean, C is the correct answer. Admin: corrected. |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
explain how the concepts of arbitrage and replication are used in pricing derivatives
CFA® 2025 Level I Curriculum, Volume 5, Module 4.