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OLga [1]
3 years ago
6

Arbitrage is used successfully by many active securities investors. True statements about arbitrage include which of the followi

ng? (Select all that
apply.)
It is basically buying one market issue as you sell another.
It is a high-risk but highly profitable trading technique.
It can be a good way to increase portfolio value.
Transaction costs must be applied to the trades.
Business
1 answer:
lakkis [162]3 years ago
4 0

Answer:

It can be a good way to increase portfolio value.

Explanation:

Arbitrage trading involving buying an investment instrument in one market and simultaneously selling it in another.  Arbitrage trading takes advantage of unadjusted/ unsynchronized prices (market inefficiency) in different markets. Stock XY may be trading at a price of $45.41 in market A and $45.51 in market B. An investor can buy the stock in Market A and, at the same time, sell it in market B, thereby gaining $0.10 per stock.

Arbitrate trading is a low-risk investment strategy, but its returns could be great. Trades are executed simultaneously, minimizing risk. Rewards are constant. Arbitrate trading is a good way of growing a portfolio due to its low-risk and almost guaranteed profits characteristics.

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If the exchange rate between the u.s. dollar and japanese yen changes from $1=70 yen to $1=100 yen, then?
bulgar [2K]

<u>If the exchange rate between the U.S. dollar and </u><u>Japanese </u><u>yen changes from</u><u> $1 = 100 yen</u><u> to </u><u>$1 = 90 yen,</u><u> then: Japanese tourists to the U.S. will benefit.</u>

What happens in the foreign exchange market when a surplus of dollars exists?

  • The supply and demand of each currency must be equal in order for the foreign exchange market to be in equilibrium, as it is in every market.
  • Until equilibrium is reached, the exchange rate will change according to whether there is a surplus or shortage on the market.

What connection exists between the supply of foreign currency and the exchange rate?

  • This decreases demand for exports and reduces the amount of foreign currency available, much like how domestic goods become more expensive for foreign consumers when the foreign exchange rate declines.
  • As a result, there is a direct connection between the supply of foreign currency and the foreign exchange rate.

Learn more about foreign exchange

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8 0
2 years ago
The worth of natural resources in contemporary economics is often based on
rjkz [21]
For the answer to the question above, they are based on the renewable and exhaustible resources of the earth that is according to the worth of natural resources in contemporary economics. Examples of exhaustible or nonrenewable resources are oil and coal. You can't replace them when they are depleted completely. On the other hand, the renewable are resources is like labor
8 0
3 years ago
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If a more efficient technology was discovered by a firm, there would be 9) A) a downward shift in the AFC curve curve C) a downw
Pepsi [2]

Answer:

The correct answer is C

Explanation:

MC curve stands for Marginal Cost Curve which states the relationship among the marginal or additional cost incurred by the company or firm in the short run product of service or good and the quantity of the product is produced.

And when the curve is downward shift, it means that there is technological change which lead to increase in the productivity and the cost curve downward.

7 0
3 years ago
A palindromic number is a number whose digits read the same left to right as right to left. for​ example, 383,​ 12,321, and​ 9,8
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The driver was going 55 mph.  

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So in two hours, the car would have sped up at 55 mph, 105 mph, 155 mph, … respectively.

6 0
3 years ago
Astor manufacturing stores hazardous and volatile chemicals in its warehouse. the warehouse has state-of-the-art equipment to ma
Alchen [17]

I believe the answer is: A. strictly liable for william's injuries.

A government regulation was made for hazardous and volatile chemical production to be stored in non-leakable container and created far away from area with many passerby. The fact that the chemicals both leaked and managed to hit a passerby means that Astor violate both of the regulations.

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3 years ago
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