Question: A. Describe how arbitrage in the real world differs from the perfect arbitrage described in most textbooks. B. Why do these differences move behavioral finance

A. Describe how arbitrage in the real world differs from the perfect arbitrage described in most textbooks.

B. Why do these differences move behavioral finance from being an academic curiosity to an important field of study.

C. Describe an instance in which one of the heuristics or biases discussed by Nofsinger played a significant role. Please identify the heuristic or bias in your answer.

D. Why is it so difficult to recognize the heuristics and biases that influence our own financial decisions?

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