An important characteristic of market equilibrium is ________.

A) the presence of many opportunities for creating zero-investment portfolios
B) all investors exhibit the same degree of risk aversion
C) the absence of arbitrage opportunities
D) the lack of liquidity in the market

Market Equilibrium

A situation in a market where the quantity supplied equals the quantity demanded at a certain price level, resulting in no net shortage or surplus.

Arbitrage Opportunities

Situations where a financial instrument or security can be simultaneously bought and sold in different markets at a price discrepancy to generate risk-free profit.