Arbitrageurs May Be Unable to Exploit Behavioral Biases Due to I)

question 19

Multiple Choice

Arbitrageurs may be unable to exploit behavioral biases due to I) fundamental risk.
II. implementation costs.
III. model risk.
IV. conservatism.
V. regret avoidance.

• A)I and II only
• B)I, II, and III
• C)I, II, III, and V
• D)II, III, and IV

---

Definitions:

Relational Skills

Pertains to the abilities required to form and maintain positive interpersonal relationships, facilitating effective communication and collaboration.

Management

The performance of four functions or processes—planning, including charting a direction, determining strategies to succeed, and making policy decisions; organizing, including aligning structure, people, and resources to achieve goals; directing, including supervising, facilitating, coaching, and developing people; and controlling, including tracking progress against plans and making corrections; an endeavor requiring technical, relational, and conceptual skills.

Career

The progression and actions taken by an individual throughout their working life, including education, employment, and other experiences.

Shadowing

A learning method where an individual gains insights and understanding by observing a professional in their work environment.