Question
In: Finance
Making profit by taking no risk is a risk-free arbitrage opportunity. True False
Making profit by taking no risk is a risk-free arbitrage opportunity.
True
False
Solutions
Expert Solution
Answer : True .
Reason :
The above Statement is True.The Making of Profit without infact taking a risk is the situation of risk free profit or Arbitrage opprortunity. Investors identifies arbitrage opportunity so as to earn risk free profit.
jeff jeffy answered 2 years agoRelated Solutions
Hedger is risk-aversion; speculator is risk-taking. True False
Hedger is risk-aversion; speculator is
risk-taking.
True
False
If an arbitrage opportunity exists, an investor can act quickly in the hope of making a...
If an arbitrage opportunity exists, an investor can act quickly
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risk minus free profit.
True
False
TRUE or FALSE 1. A riskless or risk-free asset is presumed to have a return with...
TRUE or FALSE
1. A riskless or risk-free asset is presumed to have a return
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2. The portfolio variance of a two-asset portfolio has three
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True or False Questions: Please answer true or false. 1. Even when care is free at...
True or False Questions:
Please answer true or false.
1. Even when care is free at the point of service, we would
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2. We would expect the demand curve for physician visits to be
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3. A decision by the provincial governments to include
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Is it true that a US Treasury security is risk-free?
Is it true that a US Treasury security is risk-free?
Select either true or false for the following statements 1. An opportunity cost is...
Select either true or false for
the following statements
1.
An opportunity cost is the
potential benefit that is lost by taking a specific action when two
or more alternative choices are available.
(Click to
select)FalseTrue
2.
A sunk cost will change with a
future course of action.
(Click to
select)TrueFalse
3.
An out-of-pocket cost requires a
current and/or future outlay of cash.
(Click to
select)FalseTrue
4.
Relevant costs are also known as
unavoidable costs.
(Click to
select)FalseTrue...
Select either true or false for the following statements 1. An opportunity cost is...
Select either true or false for
the following statements
1.
An opportunity cost is the
potential benefit that is lost by taking a specific action when two
or more alternative choices are available.
(Click to
select)FalseTrue
2.
A sunk cost will change with a
future course of action.
(Click to
select)FalseTrue
3.
An out-of-pocket cost requires a
current and/or future outlay of cash.
(Click to
select)FalseTrue
4.
Relevant costs are also known as
unavoidable costs.
(Click to
select)TrueFalse...
Beta is a measure of firm-specific risk. true or false
Beta is a measure of firm-specific risk.
true or false
The cost of retained earnings True or False: It is free for a company to raise...
The cost of retained earnings
True or False: It is free for a company to raise money through
retained earnings, because retained earnings represent money that
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False
True
The cost of equity using the CAPM approach
The current risk-free rate of return (rRFrRF) is 4.67% while the
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True or False: Increasing the number of stocks in a portfolio reduces market risk. A) True...
True or False: Increasing the number of stocks in a portfolio
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A) True
B) False
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industries. The return on Portfolio A is likely to be 1)
________ (MORE or LESS) volatile than that of Portfolio
B.
Suppose a stock analyst recommends buying stock in the following
companies:
Company
Industry...
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