- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 1. Market Organization and Structure
- Subject 3. Financial Intermediaries
CFA Practice Question
Any rational price for a financial instrument should ______
B. provide an opportunity for investors to make a profit.
C. be low enough for most investors to afford.
A. provide no opportunity for arbitrage.
B. provide an opportunity for investors to make a profit.
C. be low enough for most investors to afford.
Correct Answer: A
User Contributed Comments 1
| User | Comment |
|---|---|
| chesschh | fortunately for us, financiers, price is not always rational which gives us the opportunity to arbitrage |