Use the Following Information to Answer the Question(s)below

question 16

Essay

Use the following information to answer the question(s)below.
An exchange traded fund (ETF)is a security that represents a portfolio of individual stocks.Consider an ETF for which each share represents a portfolio of two shares of Apple Inc.(APPL),one share of Google (GOOG),and ten shares of Microsoft (MSFT).Suppose the current stock prices of each individual stock are as shown below:
-If the ETF is currently trading for $1200,what arbitrage opportunity is available? What trades would you make?

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Definitions:

Complex Feature Detection

The ability of the brain to identify and process multifaceted aspects of sensory input for recognition and interpretation.

Inattentional Blindness

A psychological lack of attention that is not associated with any vision defects or deficits, making an individual fail to perceive an unexpected stimulus that is in plain sight.

Bottom-up Processing

A cognitive approach where perception starts with the smallest or simplest element and works up to the formation of a complete perception or understanding.

Hyperfocus

A state of intense concentration or complete absorption with the task at hand, which can be beneficial for productivity but detrimental if it leads to neglect of other tasks.