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Are the two following statements correct? Statement 1: Arbitrage is the creation of riskless profits made possible by relative mispricing among securities. Statement 2: The
Are the two following statements correct? Statement 1: Arbitrage is the creation of riskless profits made possible by relative mispricing among securities. Statement 2: The average beta for all stocks in the market is 1.0.
A. | Yes | |
B. | No. Both statements are incorrect. | |
C. | No. Only statement 1 is correct. | |
D. | No. Only statement 2 is correct. |
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