A) Holding assets for long-term appreciation. B) Influencing market prices through large trades. C) Exploiting price differences for the same asset in different markets. D) Predicting future market trends.
A) Reliance on historical price charts. B) Following advice from market analysts. C) Gut feeling and intuition. D) Real-time market data and price comparison.
A) Inflation risk. B) Credit risk. C) Execution risk. D) Market risk.
A) Short selling overvalued stocks. B) Trading options with high volatility. C) Buying and selling currencies at random times. D) Investing in mergers and acquisitions.
A) Exploiting price discrepancies between three currencies. B) Trading stocks in three different sectors. C) Investing in three different countries. D) Using three different trading strategies.
A) It increases potential profits. B) It has no impact on profitability. C) It reduces potential profits. D) It only affects institutional investors.
A) Easy access to capital. B) Lack of regulatory oversight. C) Opportunities disappearing quickly. D) Too much available information.
A) Bond market. B) Forex market. C) Real estate market. D) Commodities market.
A) Ignoring currency exchange rates when investing internationally. B) Investing in high-yield bonds without considering risk. C) Exploiting interest rate differentials and using forward contracts. D) Borrowing money to invest in speculative assets.
A) HFT eliminates all arbitrage opportunities. B) HFT focuses solely on long-term investments. C) HFT has no impact on arbitrage. D) HFT algorithms can quickly identify and execute arbitrage opportunities.
A) To facilitate the execution of trades. B) To provide financial advice. C) To guarantee profits from arbitrage. D) To manage the investor's portfolio.
A) Personal relationships with market makers. B) Sufficient capital. C) Blind luck. D) Inside information.
A) Arbitraging different time horizons. B) Using different trading strategies. C) Exploiting price differences in different geographical locations. D) Trading different types of assets.
A) Arbitrage is illegal. B) Market forces tend to eliminate price discrepancies. C) Governments regulate them out of existence. D) Traders lose interest quickly.
A) Regulations always favor arbitrageurs. B) Changes in regulations can impact profitability. C) Arbitrage is unregulated. D) Regulatory risk is only relevant for large institutions.
A) It eliminates the risk of losses. B) It magnifies both profits and losses. C) It has no impact on profitability. D) It always increases profits.
A) A car. B) A house. C) Stocks. D) A piece of land.
A) Arb-win. B) Arb-neutral. C) Arb-loss. D) Arb-failure.
A) Retail arbitrage. B) Convertible arbitrage. C) Value arbitrage. D) Statistical arbitrage.
A) To manipulate market prices. B) To identify mispricings through algorithms. C) To eliminate all risks. D) To predict the news.
A) It leads to market crashes. B) It reduces price discrepancies. C) It increases price volatility. D) It benefits only institutional investors.
A) Illegal activity. B) Risk-free profit. C) Extremely complex strategy. D) Guaranteed high profit.
A) Low competition. B) High availability of capital. C) High transaction costs relative to profit. D) Guaranteed profits.
A) All information leads to successful arbitrage. B) Information is irrelevant. C) Early access to information is crucial. D) Information is only useful for long-term investing.
A) Highly regulated markets. B) Inefficient markets. C) Stagnant markets. D) Perfectly efficient markets.
A) Slippage. B) Unlimited liquidity. C) Guaranteed profits. D) No competition.
A) Short-term. B) Long-term. C) Medium-term. D) Very long-term.
A) Patience. B) Creativity. C) Loyalty. D) Speed and efficiency.
A) High frequency arbitrage B) Covered interest arbitrage C) Retail arbitrage D) Statistical arbitrage.
A) Markets become less liquid. B) Nothing changes. C) Markets crash D) Markets become more efficient. |