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g An arbitrage opportunity arises when... Group of answer choices An investment has a high risk-return ratio. disparity between 2 or more prices allow investors to yield a sure profit the risk-free rate generates a positive alpha. a net investment is taken place within a portfolio

Respuesta :

Answer:

disparity between 2 or more prices allow investors to yield a sure profit

Explanation:

Arbitrage is defined as the practice where there is simultaneous buying and selling of an asset so as to benefit from a price difference.

Usually the price differences occur in different markets, so the arbitrator acts as a supplier of the goods to market where goods are to be sold.

For example if a company buys fertiliser from a whole seller and immediately sells the goods to a farmer's cooperative at higher price this is arbitrage.

So abitrage opportunity is when disparity between 2 or more prices allow investors to yield a sure profit