The efficient market hypothesis theory states that the market prices securities fairly and efficiently, and investors are unable to outperform the market consistently. Moreover, EMH theory proposes ...

Arbitrage is a fundamental concept in finance, playing a crucial role in determining prices for assets like currencies, ...

Investors should not take the stock market's long-term safety for granted and should always account for potential risks. Using pairs or sets of ETFs, including leveraged ETFs, can provide a ...

The Efficient Market Hypothesis claims that arbitrage by "smart money" in the market pushes prices towards their informationally efficient values, i.e., values that reflect "all available information.

Initially, I meant this response as a comment to a recent blog post, Arbitrage Pricing Theory – MBA Mondays with Darwin, however as I began to write, it has taken on a life of it's own. I commend ...

Citations: Gabaix, Xavier, Arvind Krishnamurthy, Olivier Vigneron. 2007. Limits of Arbitrage: Theory and Evidence from the Mortgage Backed Securities Market. Journal of Finance. (2)557-595.

SIR: For decades, Nigeria’s Bureau de Change (BDC) sector operated largely on arbitrage between official and parallel markets. With the previous minimum share capital requirement of $23,000 (N35 ...