The reward-risk ratio theory has gained credence because of evidence that when carry trade profit margins are high, arbitrage bids them down quickly, whereas when they are low:
A) investors pursue them more slowly.
B) investors are often not interested.
C) arbitrage bids them up quickly.
D) no arbitrage is possible.

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The Answer of The reward-risk ratio theory has gained credence because of evidence that when carry trade profit margins are high, arbitrage bids them down quickly, whereas when they are low:
A) investors pursue them more slowly.
B) investors are often not interested.
C) arbitrage bids them up quickly.
D) no arbitrage is possible.

The Reward-Risk Ratio Theory Has Gained Credence Because of Evidence