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Author Question: Why are arbitrage opportunities short-lived? (Read 93 times)

Pea0909berry

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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
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Marked as best answer by Pea0909berry on Jul 9, 2019

kmb352

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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.
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Pea0909berry

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Reply #2 on: Jul 9, 2019
Excellent


kmb352

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Reply #3 on: Jul 9, 2019
Great! Please up vote :D


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