What Is the Term for the Process of Clumping? ____________________

question 72

Short Answer

What is the term for the process of clumping? ____________________

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Definitions:

Arbitrage Opportunity

The opportunity to buy an asset at a lower price in one market and sell it at a higher price in another, securing a risk-free profit.

Short Position

A trading strategy involving the sale of a security that is not owned by the seller, with the expectation that the price will decline, allowing it to be bought back at a lower price.

Long Position

A financial term describing the purchase of a security with the expectation that its value will rise over time.

Multifactor APT

A model in financial markets that describes how the returns of an asset can be determined by its exposure to multiple risk factors, as per the Arbitrage Pricing Theory.