Arbitrage Traders

question 48

Multiple Choice

Arbitrage traders:

• A)tend to be well capitalized.
• B)tend to be irrational investors.
• C)are dominated by irrational investors in an efficient market.
• D)lower the efficiency level of a market.
• E)sell only relatively inexpensive stocks.

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Definitions:

Valued Rewards

Incentives or recognition that hold significant meaning or worth to an individual or group, motivating behavior and fostering a sense of achievement and satisfaction.

Job Performance

The level of effectiveness and efficiency with which an individual fulfills their job responsibilities and tasks.

Expectancy Theory

A motivational theory that proposes individuals are motivated to act in a certain way based on their expectation that their actions will lead to a desired outcome.

Goal Setting

The process of defining specific, measurable, and time-targeted objectives to be achieved by an individual, team, or organization.