What is meant by arbitrage profits?
Answer to relevant QuestionsWhat are some of the problems involved in implementing the goal of maximization of share-holder wealth? Distinguish between the money and capital markets. What is an investment banker, and what major functions does he or she perform? What are the markets and mechanics involved in generating simple arbitrage profits? Are the inputs more complicated to a direct foreign investment than those to the domestic investment problem? If so, why?
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