Arbitrage traders:
A)tend to be well capitalized.
B)tend to be irrational investors.
C)are dominated by irrational investors in an efficient market.
D)lower the efficiency level of a market.
E)sell only relatively inexpensive stocks.

Question

Quizplus · Accepted Answer

Arbitrage traders tend to be well capitalized in order to take advantage of small price discrepancies between markets or securities. This allows them to make quick trades and minimize risk.

Arbitrage Traders