[Solved] Which of the following statements about arbitrage is correct?

Q.	Which of the following statements about arbitrage is correct?
A.	A risk averter will arbitrage because profits can be made with no risk and no investment.
B.	A risk averter will never arbitrage because of the risk involved.
C.	Arbitrage opportunity arises when profits can be made with low level of risk.
D.	Arbitrage opportunities continue to exist in equilibrium.
Answer» A. A risk averter will arbitrage because profits can be made with no risk and no investment.

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