at markets are free of arbitrage opportunities?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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question 10 ,please qucikly thanks !!

Question 10
Why is it reasonable to assume that markets are free of arbitrage opportunities?
O Because any arbitrage opportunities that arise disappear very quickly
O Because regulations prohibit arbitrage opportunities to exist
O Because even if they existed, we would not know about them
Because it is impossible for arbitrage opportunities to exist
Transcribed Image Text:Question 10 Why is it reasonable to assume that markets are free of arbitrage opportunities? O Because any arbitrage opportunities that arise disappear very quickly O Because regulations prohibit arbitrage opportunities to exist O Because even if they existed, we would not know about them Because it is impossible for arbitrage opportunities to exist
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