An investor takes as large a position as possible when an equilibrium price relationship is violated. This

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An investor takes as large a position as possible when an equilibrium price relationship is violated.
This is an example of:
a. A dominance argument.
b. The mean-variance efficient frontier.
c. Arbitrage activity.
d. The capital asset pricing model.

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 07:52 AM

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An investor takes as large a position as possible when an equilibrium price relationship is violated. This

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Correct answer Option c arbitrage activity is a correct answer because when there is a viola...View the full answer

Investments

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