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 ________.

• A)technical trends in prices
• B)momentum effects
• C)fundamental risk
• D)trend reversals

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Definitions:

Language Patterns

involve the structures, uses, and variations of language in communication, influencing understanding and interactions.

Originating

The act or process of bringing something into existence; initiating or beginning something.

Powering

Enhancing or increasing the capability, influence, or effectiveness of an individual or group.

Transforming

The process of undergoing a significant change or alteration in form, nature, or appearance, often used in the context of personal, organizational, or social change.