Question1. Arbitrage is limited because the wealth of arbitrageurs is limited.  Discuss this statement in the context of those who are managing their own money and those who are managing other people’s money. Question 2. Differentiate the following terms and concepts: a,Primacy and recency effects b. Salience and availability c. Fast-and-frugal heuristics and bias-generating heuristics d. Autonomic and cognitive heuristics  Please include refernces and in text citations.

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
Section: Chapter Questions
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Question1. Arbitrage is limited because the wealth of arbitrageurs is limited.  Discuss this statement in the context of those who are managing their own money and those who are managing other people’s money.

Question 2. Differentiate the following terms and concepts:

a,Primacy and recency effects

b. Salience and availability

c. Fast-and-frugal heuristics and bias-generating heuristics

d. Autonomic and cognitive heuristics 

Please include refernces and in text citations.

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