๐Ÿ“ข Too many exams? Donโ€™t know which one suits you best? Book Your Free Expert ๐Ÿ‘‰ call Now!

  • google app store apple app store
  • โœ–

      Question

      Arbitrage trading will not be possible in which of the

      following cases?ย 
      A Markets are perfectly inefficient Correct Answer Incorrect Answer
      B Markets are partly inefficient Correct Answer Incorrect Answer
      C Markets are partly efficient Correct Answer Incorrect Answer
      D Markets are perfectly efficient Correct Answer Incorrect Answer
      E Arbitrage is always possible Correct Answer Incorrect Answer

      Solution

      Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.

      Practice Next
      More Alternate Sources of Finance Questions
      ask-question