A Possible Limit on Arbitrage Activity That May Allow Behavioral

question 13

Multiple Choice

A possible limit on arbitrage activity that may allow behavioral biases to persist is ________.

• A) technical trends in prices
• B) momentum effects
• C) fundamental risk
• D) trend reversals

---

Definitions:

Nastic Movements

Non-directional responses to stimuli (e.g., temperature, humidity, light intensity) that cause movement in plants.

Tropisms

Biological phenomena where organisms grow or move in response to an environmental stimulus, such as light or gravity.

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours.

Aleurone Cells

Specialized cells found in the outer layer of seeds, particularly in cereal grains, that play a role in nutrient storage and mobilization during germination.