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Basic Question 6 of 7

Which of the following is LEAST LIKELY to be a result of arbitrage?

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.
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Colin Sampaleanu

Colin Sampaleanu

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.