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A Possible Limit on Arbitrage Activity That May Allow Behavioural

question 11

Multiple Choice

A possible limit on arbitrage activity that may allow behavioural biases to persist is ________.


Definitions:

Assignor

A person or entity who transfers obligations along with rights to another party in the context of a legal agreement.

Assignee

A person, company, or entity who is transferred the rights or interests of another's contract or property.

Privity of Contract

A legal principle that asserts a contract cannot bestow rights or impose obligations on any person who is not a party to the contract.

Intended Beneficiary

A third party to a contract whom the contracting parties intended to benefit directly from their contact.

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