单选题 If the risk-free rate of interest is 5 percent and an investor enters into a transaction that has no risk, the rate of return the investor should earn in the absence of arbitrage opportunities is

A. 0%.
B. between 0% and 5%.
C. 5%.

【正确答案】 C

【答案解析】In the absence of arbitrage opportunities, an investor beating no risk should expect to earn the risk-free rate.