CFA Practice Question

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CFA Practice Question

Any rational price for a financial instrument should ______

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
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