Question: Question 4 (8 marks) (a) Identify and explain ONE incentive and ONE limitation for arbitrageurs to promote market efficiency. (4 marks) (b) Uniqno Corporation, an

Question 4 (8 marks) (a) Identify and explain ONE incentive and

Question 4 (8 marks) (a) Identify and explain ONE incentive and ONE limitation for arbitrageurs to promote market efficiency. (4 marks) (b) Uniqno Corporation, an apparel retailing company, reported 20% growth of net income in the last financial year. The share price dropped 8% after the result announcement. Explain why the situation does NOT violate Efficient Markets Hypothesis (EMH). (4 marks) ~ End of Assignment 2

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