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Which of the following most accurately describes arbitrage as it relates to investing strategies? transactions that produce profits for any given level of risk gains

Which of the following most accurately describes arbitrage as it relates to investing strategies?

  • transactions that produce profits for any given level of risk
  • gains may be made by capitalizing on shifting risks
  • prices change while risk does not thus offering opportunities to gain
  • arbitrage opportunities often exist in fully developed, efficient markets

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