How long does it take prices of securities to adjust so as to eliminate arbitrage profits?
A) seconds
B) hours
C) days
D) months

Name: How long does it take prices of securities to adjust so as to eliminate arbitrage profits? A) seconds B) hours C) days D) months
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Question

Quizplus · Accepted Answer

The prices of securities typically adjust quickly, often within seconds, to eliminate any arbitrage opportunities. This is because traders are constantly monitoring the market and will quickly take advantage of any mispricings.

How Long Does It Take Prices of Securities to Adjust