Consider two securities, A & B. Suppose a third security, C, has the same cash flows a
s A and B combined. Given this information about securities A,B, & C, which of the following statements is INCORRECT?
A、If the total price of A and B is cheaper than the price of C, then we could make a profit selling A and B and buying C.
B、Price(C) = Price(A) + Price(B)
C、Because security C is equivalent to the portfolio of A and B, by the law of one price they must have the same price.
D、The relationship known as value additivity says that the value of a portfolio is equal to the sum of the values of its parts.