The law of one price posits that ability to arbitrage would force prices of identical goods to trade at equal prices.However, empirical evidence suggests that __________ are often mispriced.
A)Siamese twin companies
B)equity carve-outs
C)closed-end funds
D)Siamese twin companies and closed-end funds
E)All of the options

Question

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The law of one price posits that ability to arbitrage would force prices of identical goods to trade at equal prices.However, empirical evidence suggests that Siamese twin companies, equity carve-outs, and closed-end funds are often mispriced.

The Law of One Price Posits That Ability to Arbitrage