It Is the Nature of Arbitrage to Even Out Excessive

question 73

True/False

It is the nature of arbitrage to even out excessive fluctuation by destroying its own profitability.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the last items placed in inventory are the first ones sold.

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a given period, indicating the efficiency of inventory management.