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- market mispricing creates arbitrage opportunities, is this true and how. the actions of arbitrageurs contributes towards the removal of mispricing, is this true and how.It is said that market mispricing creates arbitrage opportunities. The other side of the coin is that the actions of arbitrageurs contribute to the removal of mispricing. How do you reconcile these seemingly contrary arguments?Describe insider trading. Why is it illegal?
- How can brokers and dealers make money? Which activity is riskier? Why?What do you know about arbitrage opportunity? Discuss with examples. Also, present a scenario of any type of international arbitrage if possible. If so, how would it be executed and how would market forces be affected? Does arbitrage opportunity destabilize foreign exchange markets?What is day trading, and why is it risky? How can you avoid problems as an online trader?
- If a company decides to use FDI as its primary strategy to enter new foreign markets, a likely factor in their decisions is the comparatively low risk associated with FDI in comparison to other entry strategies. True falseHow is high-frequency trading similar to broker-dealerinternalization? How is it different?Which of the following statements regarding arbitrage is the most correct? A) Any situation in which it is possible to make a profit without taking any risk is known as an arbitrage opportunity. B) Any situation in which it is possible to make a profit without making any investment is known as an arbitrage opportunity. C) We call a competitive market in which there are no arbitrage opportunities an arbitrage market. D) The practice of buying and selling equivalent goods in different markets to take advantage of a price difference is known as arbitrage.