This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why are arbitrage opportunities short-lived? (Read 40 times)

Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
on: Jul 9, 2019
Why are arbitrage opportunities short-lived?
◦ Arbitrage opportunities need a lot of information processing, which is very slow to arrive.
◦ Once investors take advantage of the opportunity, prices will respond so that the buying and selling price become equal.
◦ Prices will fluctuate up and down as traders take advantage of the opportunity, resulting in the net present value (NPV) fluctuating between positive and negative values.
◦ Federal regulations will kick in to restrict trade and effectively shut the opportunity down.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Pea0909berry on Jul 9, 2019

kmb352

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
Reply #2 on: Jul 9, 2019
Excellent


kmb352

  • Sr. Member
  • ****
  • Posts: 319
Reply #3 on: Jul 9, 2019
Great! Please up vote :D


« previous next »
 

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Levels of Processing Affects Long-Term but not Short-Term Memory Levels of Processing Affects Long-Term but not Short-Term Memory
Children with Down syndrome have a small head, short, thick neck, flattened face, and a distinctive ... Children with Down syndrome have a small head, short, thick neck, flattened face, and a distinctive ...
Most lifts are equipped with short pad extensions that are often necessary to use to allow the pad ... Most lifts are equipped with short pad extensions that are often necessary to use to allow the pad ...
Professional association conventions provide opportunities for networking with other massage ... Professional association conventions provide opportunities for networking with other massage ...
Short Table of Laplace Tranforms Short Table of Laplace Tranforms
Video: Mechanism of enzyme action

For a complete list of videos, visit our video library