Pairs Trading Is Associated with

question 17

Multiple Choice

Pairs trading is associated with

• A) triangular arbitrage.
• B) statistical arbitrage.
• C) data mining.
• D) triangular arbitrage and data mining.
• E) statistical arbitrage and data mining.

---

Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms in a competitive market make just enough profit to cover their costs.

Marginal Cost

The increase or decrease in the total cost incurred from producing one additional unit of a good or service.

Industry Entry

The act of a new company entering an existing market with the intention of selling goods or services.