Alpha Co. is a publically traded stock that is traded very infrequently and has a low price. Beta Co is a publically traded stock that is traded very frequently and has a high price. Why then would Alpha Co. be more likely to present limits to arbitrage than Beta Co.?

Answer rating: 100% (QA)

Alpha Co is more likely to present limits to arbitrage than Beta Co due to several factors related to the characteristics of the two stocks 1 Liquidit... View the full answer