According to the theory of arbitrage: a. High-beta stocks are consistently overpriced. b. Low-beta stocks are consistently

Question:

According to the theory of arbitrage:
a. High-beta are consistently overpriced.
b. Low-beta are consistently overpriced.
c. Positive alpha investment opportunities will quickly disappear.
d. Rational investors will pursue arbitrage consistent with their risk tolerance.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...