问题 单项选择题

If the risk-free rate of interest is 5 percent and an investor enters into a transaction that has no risk, the rate of return the investor should earn in the absence of arbitrage opportunities is

A.

A. 0%.

B.

B. between 0% and 5%.

C.

C. 5%.

答案

参考答案:C

解析:In the absence of arbitrage opportunities, an investor beating no risk should expect to earn the risk-free rate.

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单项选择题