Consider two portfolios, A and B. We consider their values today and on some future date, time T. There are no cash flows on intermediate dates. If arbitrage opportunities are ruled out, then which of the following statements is INCORRECT? If the portfolios A and B have the same value today, then they must always have the same value at time T. If the portfolios A and B always have the same value at time T, then they must have the same value today. If we subtract portfolio A from B, and the resulting portfolio always has a zero value at time T, then it must have a zero value today. If we subtract portfolio A from B, and the resulting portfolio always has a positive value at time T, then it has a positive value today. If we subtract portfolio A from B, and the resulting portfolio has a zero value today, then it need not have a zero value at time T.

Consider two portfolios, A and B. We consider their values today and on some future date, time T. There are no cash flows on intermediate dates. If arbitrage opportunities are ruled out, then which of the following statements is INCORRECT? If the portfolios A and B have the same value today, then they must always have the same value at time T. If the portfolios A and B always have the same value at time T, then they must have the same value today. If we subtract portfolio A from B, and the resulting portfolio always has a zero value at time T, then it must have a zero value today. If we subtract portfolio A from B, and the resulting portfolio always has a positive value at time T, then it has a positive value today. If we subtract portfolio A from B, and the resulting portfolio has a zero value today, then it need not have a zero value at time T.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 13QTD

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