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