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Two stocks have identical risk, but one of them offers a higher expected return than the other. This apparent inefficiency in the market:
A. can only arise when arbitrageurs lack the capital to exploit the situation.
B. may persist and even grow larger before any correction occurs.
C. indicates that arbitrageurs must be unaware of the mispricing.
Answer: B
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 2
Which of the following is a web application control that should be put into place to prevent exploitation of Operating System (OS) bugs?
A. Digitally sign each application module
B. Include logging functions
C. Check arguments in function calls
D. Test for the security patch level of the environment
Answer: D

NEW QUESTION: 3
The control manager needs to associate an existing test plan to an additional assessment type, Audit Test. The existing test plan is associated only with the Design Review assessment type.
How canthis be accomplished?
A. The control's test plan should be updated to Audit Test as the assessment type.
B. The control manager should create a new test plan with Audit Test and Design Review as assessment types.
C. The controlmanager does not need to update the control because any initiated assessment will include all control test plans.
D. The control's test plan should be updated to include both Audit Test and Design Review as assessment types.
Answer: D


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