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If two neighbors who share a private hedge on their property line talk to each other and decide to take turns trimming the hedge without signing a written contract, they have most likely engaged in
Limits To Arbitrage
The constraints that prevent traders from executing trades that would bring prices into equilibrium, including transaction costs, funding costs, and risk considerations.
Availability Bias
A cognitive bias that causes people to overestimate the probability of events associated with memorable or vivid occurrences.
Clustering Illusion
The cognitive bias of seeing a pattern in random events where none actually exists.
Professional Fund Managers
Individuals or entities responsible for making investment decisions and managing investment portfolios on behalf of investors.
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