Which of the following statements about arbitrage is correct? Select one: O a. A risk averse investor will never arbitrage because of the risk involved. O b. An arbitrage opportunity arises when it is...

Extracted text: Which of the following statements about arbitrage is correct? Select one: O a. A risk averse investor will never arbitrage because of the risk involved. O b. An arbitrage opportunity arises when it is possible to exploit a pricing anomaly to make riskless guaranteed profits. O c. Arbitrage opportunities continue to exist in equilibrium. d. An investor loves to arbitrage because he/she is willing to pay a premium to buy risky assets.