Statistical Arbitrage Is a Version of a ______ Strategy

question 9

Multiple Choice

Statistical arbitrage is a version of a ______ strategy.

• A) market neutral
• B) directional
• C) relative value
• D) divergence
• E) convergence

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Definitions:

ATP

Adenosine triphosphate, a molecule that stores and transfers energy within cells, acting as a universal energy currency for cellular processes.

Laws of Physics

The laws of physics are the fundamental principles that describe the behavior of the physical universe, including concepts of energy, motion, forces, and matter interactions.

Sunlight

the light and energy that comes from the sun, essential for photosynthesis in plants and influencing Earth's climate and weather.

Second Law

Also known as the second law of thermodynamics, it states that the total entropy of an isolated system can never decrease over time, and is central to the direction of heat transfer and the efficiency of heat engines.