The difference between an arbitrage and a great bet is

Question

Quizplus · Accepted Answer

Arbitrage involves taking advantage of price discrepancies in different markets without requiring any cash outflow. On the other hand, a great bet usually involves risking some amount of money in order to potentially earn a higher return. Hence, option B is the correct answer. Options A, C, and D are not accurate statements. An arbitrage opportunity involves taking advantage of a price discrepancy in different markets without requiring a cash outflow. On the other hand, a great bet usually involves investing money in an asset or market in the hopes of earning a profit. Therefore, a great bet usually requires a cash outflow, at least in some scenarios. The other options are incorrect as they make generalizations about the ease of finding arbitrage opportunities or great bets, or the expected return on each strategy, which may vary depending on the specific circumstances.

The Difference Between an Arbitrage and a Great Bet Is