Behavioralists point out that even if market prices are ____________ there may be _______________.
A) distorted; limited arbitrage opportunities
B) distorted; fundamental efficiency
C) allocationally efficient; limitless arbitrage opportunities
D) distorted; allocational efficiency

Question

Quizplus · Accepted Answer

Behavioralists argue that market prices can be distorted due to various cognitive biases and irrational behaviors of market participants. However, even if prices are distorted, there may be limited arbitrage opportunities, as this may require a high level of expertise, resources, and access to information that may not be available to all investors.

Behavioralists Point Out That Even If Market Prices Are ____________