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Which of These Help Prevent Arbitrage from Totally Correcting Market

Question 7

Multiple Choice

Which of these help prevent arbitrage from totally correcting market mispricings?
I.Trading costs
II.Market domination by rational professionals
III.Number of amateur investors
IV.Near-term risk


A) I only
B) I and II only
C) III and IV only
D) I,III,and IV only
E) I,II,III,and IV

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