1. Which of the following is an arbitrage?

A) Two assets with exactly similar future cash flows but trading at different market prices.

B) Selling a stock with low expected return and buying a stock with higher expected return.

C) Selling a bond with a guarantee return of 5% and buying a stock with expected return of 10% and a standard deviation of 20%.

D) Selling a stock with low risk premium and buying a stock with a high risk premium.