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Explain the Process by Which Prices of Securities Adjust So

question 33

Essay

Explain the process by which prices of securities adjust so as to eliminate arbitrage profits.


Definitions:

Flowchart

A flowchart is a diagram that depicts a process, system, or computer algorithm, typically using standardized symbols.

Decision Tree

A diagram that shows the various outcomes from a series of decision points, allowing for clear decision-making and prediction.

Pictograph

A symbol or image that represents an object or concept, used in early forms of writing or in modern graphs and charts.

Picture Units

Visual elements used in communication or presentations to represent or illustrate information.

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