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:

Sales-oriented

Focused primarily on achieving sales targets, often through aggressive marketing and promotional strategies, without necessarily prioritizing customer needs.

Market-oriented

A business approach that prioritizes the needs and wants of customers in the creation and selling of products or services.

Relational Orientation

An approach in business and marketing that emphasizes building long-term relationships with customers, focusing on customer satisfaction, loyalty, and engagement.

Lifetime Profitability

The total profit expected from a customer over the entire period of their relationship with a company.