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

Author Question: Why are arbitrage opportunities short-lived? (Read 75 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?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Cellular changes associated with short-term and long-term memory in the sea slug. Cellular changes associated with short-term and long-term memory in the sea slug.
Intussusception. A short length of small intestine has telescoped into itself. Intussusception. A short length of small intestine has telescoped into itself.
Sources for Job Opportunities Sources for Job Opportunities
Short, Upbeat Massage Sessions can Improve Mental Alertness. Short, Upbeat Massage Sessions can Improve Mental Alertness.
Consider a two-period economy with no investment opportunities: first and second period output ... Consider a two-period economy with no investment opportunities: first and second period output ...
Answer the following short answer, please show your steps and include the formulas used Answer the following short answer, please show your steps and include the formulas used
Video: Phases of mitosis

For a complete list of videos, visit our video library