Which of the Following Case Studies Illustrates a Limit to Arbitrage

question 56

Multiple Choice

Which of the following case studies illustrates a limit to arbitrage as discussed in the text?

• A) "Siamese twin" companies
• B) equity carve-outs
• C) closed-end funds
• D) all of the options.

---

Definitions:

Sickles

Curved, hand-held agricultural tools used for harvesting grain crops or cutting grass for hay.

Potatoes

A tuberous crop from the perennial nightshade Solanum tuberosum, widely cultivated for its edible starchy tubers.

Food Foragers

Food foragers are individuals or groups who sustain themselves by collecting wild plants, hunting animals, and gathering other food resources available in their environment.

Food Production

The process that involves growing crops and raising livestock for human consumption.