An arbitrage opportunity is least likely to be exploited when:
A: one position is illiquid.
B: the price differential between assets is large.
C: the investor can execute a transaction in large volumes.
A: one position is illiquid.
B: the price differential between assets is large.
C: the investor can execute a transaction in large volumes.
举一反三
- An analyst does research about market efficiency. Which of the following statements least likely explains why a market mispricing may persist（） A: Arbitrage is encouraged to produce riskless profits. B: A price discrepancy is insufficient large to leave the investor with a profit. C: Short selling is limited or restricted.
- Bob, a fund manager, is seeking to sell a large position in fairly illiquid stock. He buys and sells shares of the stock between that fund and another he also manages to create an appearance of activity and higher stock price, so that the sale of the whole position. Bob most likely violates ______.
- By law, when one makes a large purchase, he should have _______ opportunity to change his mind.
- Covered interest arbitrage is plausible when the forward premium reflect the interest rate differential between two countries specified by the interest rate parity formula.
- A large decrease in the income tax rate will most likely cause A: a fairly large increase in aggregate demand B: a fairly small increase in aggregate supply C: an increase in the price level D: all of the above E: none of the above