Question: ou think you have discovered a persistent pricing anomaly. Which of the following is a reason you should be hesitant to trade on this information
ou think you have discovered a persistent pricing anomaly. Which of the following is a reason you should be hesitant to trade on this information (i.e stake some of your wealth nyour findingsi? True anomalies should be self -destructing (markets will trade on it untalit disappears), thus you may have overlooked a risk factor associated with your persistent anomaly. You may have just found a pattern that occurred by chance. Even if trading on the anomaly was grobtable in the past, it does not guarantee that it will be profitable in the future. all of the above
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