Speculators Profit by Taking Risks, While the Actions of Arbitrageurs

question 108

True/False

Speculators profit by taking risks, while the actions of arbitrageurs involve no risk.

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Definitions:

Scratch-and-Save

A promotional discount method where customers scratch a card to reveal a discount or prize.

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Rate of Markdown

The percentage decrease from the original price to the sale price.

Operating Expenses

Costs associated with the day-to-day operations of a business or organization.