Arbitrage Is a Transaction Designed to Capture Profits Resulting from Market

question 17

True/False

Arbitrage is a transaction designed to capture profits resulting from market efficiency.

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Definitions:

Addendum

An additional document appended to a contract, agreement, or other document, containing supplementary information or modifications.

Groupthink

A mode of thinking in highly cohesive groups in which the desire to reach unanimous agreement overrides the motivation to adopt proper rational decision-making procedures.

Unanimity

Complete agreement among all members or parties involved on a particular issue or decision.

Rational

Based on or in accordance with reason or logic; capable of making sensible or logical decisions.