CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

Good Z can be bought and sold on both Market #1 and Market #2. Which of the following sets of prices for Good Z conform(s) to the no-arbitrage principle?

I. Market #1 = $75; Market #2 = $75
II. Market #1 = $125; Market #2 = $115
III. Market #1 = $87; Market #2 = $87
A. I and II
B. I and III
C. II and III
Explanation: II illustrates irrational pricing and does not conform to the no-arbitrage principle.

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