What are the two key things that make arbitrage opportunity

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1. What are the two key things that make an arbitrage opportunity? How do you execute arbitrage when an opportunity arises?

2. What happens when the assumptions of CAPM are applied to portfolio optimization in a single-index market? What conclusions can be drawn?

3. What happens when the assumptions of APT are applied to portfolio optimization in a single-index market? What conclusions can be drawn?

Reference no: EM131893341

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