Pure Arbitrageurs exploit opportunities by creating a riskless long-short portfolio with zero net investment. What is a long-short portfolio?

	A.	Simultaneously buying the asset where it is cheap and selling it where it is expensive.
	B.	Simultaneously buying the asset thus pushing its price up and then selling it in the same market within a few microseconds to take advantage of the small price increase.
	C.	Simultaneously buying at NYSE and selling at NASDAQ since NYSE is automated while NASDAQ is driven by dealers.
	D.	Simulatneously using CAPM to buy while using APT to sell. The conflict of the two models leads to a riskless profit.

Your friend boasts that they beat the market every month for the past 2 years. Does this mean that EMH is false?

	A.	No, since EMH does not mean that you cannot earn high returns. EMH simply means that higher returns can only happen when you take on higher risk. And Risk simply means uncertainty. So, my friend is just lucky that the higher uncertainty has not worked against them yet.
	B.	No, since EMH does make any predictions about your friend's return. EMH says that his streak will end next year.
	C.	Yes, EMH has been fully debunked. They even awarded a Nobel Prize to Shiller who debunked EMH
	D.	Yes, EMH is no longer accepted since there are too many anomalies. The existence of anomalies means that markets are not efficient since if they were there would be no anomalies.