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9. Consider two securities, A & B. Suppose a third security, C, has the same cash ows as A and B combined. Given this information
9. Consider two securities, A & B. Suppose a third security, C, has the same cash ows as A and B combined. Given this information about securities A,B, & C, which of the following statements is INCORRECT? a. Price(C) = Price(A) + Price(B) c. If the total price of A and B is cheaper than the price of C, then we could make a profit selling A and B and buying C. b. Because security C is equivalent to the d. The relationship known as value portfolio of A and B, by the law of one additivity says that the value of a price they must have the same price. portfolio is equal to the sum of the values of its parts
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