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