Which of the Following Create Limits to Arbitrage

question 32

Multiple Choice

Which of the following create limits to arbitrage?
I.risks related to an individual firm
II.implementation costs
III.rational traders
IV.noise traders

• A)I and III only
• B)II and IV only
• C)I, II, and III only
• D)I, II, and IV only
• E)I, II, III, and IV

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Definitions:

Repression

A defense mechanism proposed by psychoanalytic theory, where a person unconsciously blocks out painful, uncomfortable, or threatening memories, thoughts, or desires from consciousness.

Projection

A defense mechanism where individuals attribute their unwanted feelings or impulses onto someone else, rather than admitting to or dealing with the unwanted feelings themselves.

Identification

The process of associating oneself with certain characteristics of another person, group, or idea, often as a role model or for the sake of establishing one's identity.

Self-Esteem

An individual's overall subjective evaluation of their own worth or value.