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Question 2 (1 point) Which of the following is an arbitrage opportunity? The bank offers you a loan at 4% interest and a savings account

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Question 2 (1 point) Which of the following is an arbitrage opportunity? The bank offers you a loan at 4% interest and a savings account that pays 5% interest. For every $1 you deposit today, the bank offers to pay you $1 in a year if the economy is bad and $2 in a year if the economy is good. The bank offers you a loan at 5% interest and a sa Two stocks, one has expected return of 5%, the other 4%

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