26. Duration is a concept that is useful in evaluating _________ of a bond.

a.

operational risk

b.

price volatility

c.

liquidity risk

d.

credit risk

27. One can take advantage of an arbitrage opportunity by:

a.

taking a short position in the cheapest market and a long position in the expensive market.

b.

take a long position in both markets.

c.

take a long position in the cheaper market and a short position in the expensive market.

d.

take a short position in both markets.

28. Arbitrage involves taking advantage of the sale of overvalued assets in markets where they are undervalued.

a.

Certain

b.

Fake