$1-$Arbitrageurs take advantage of mispricing in asset markets. What limits their ability to arbitrage?

Group of answer choices

restrictions on short sales

fundamental$-$risk

noise$-$ trader risk

trading costs, including bid$-$ask spread

all of the above limit arbitrage

$2-$Overconfidence can take different manifestations. which of the below is NOT a form of overconfidence?

Group of answer choices

illusion of control

excessive optimism

hot hand phenomenon

better$-$than$-$average effect

$3-$Which of the following is true?

Group of answer choices

Local preference does not extend to language and culture

The tendency to invest locally is much stronger for very small firms

Home bias may be driven by comfort with what is familiar

The presence of an informational advantage is not rational explanation for home bias