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    Exam 10: Arbitrage Pricing Theory and Multifactor Models of Risk and Return
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    <Sup> </Sup>The Term "Arbitrage" Refers to
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The Term "Arbitrage" Refers to

Question 68

Question 68

Multiple Choice

The term "arbitrage" refers to


A) buying low and selling high.
B) short selling high and buying low.
C) earning risk-free economic profits.
D) negotiating for favorable brokerage fees.
E) hedging your portfolio through the use of options.

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