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2. Answer whether each of the following statements is correct and explain your argument. (c) An arbitrage portfolio arises when two or more security prices

2. Answer whether each of the following statements is correct and explain your argument.

(c) An arbitrage portfolio arises when two or more security prices enable investors to construct a portfolio that will yield a positive return under all possible scenarios.

(d) A well-diversified portfolio eliminates all risks.

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