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Asset pricing Answer the following questions about trading strategies in efficiently inefficient markets. (a)Discuss the common idea behind arbitrage strategies. What are the potential risks

Asset pricing

Answer the following questions about trading strategies in efficiently inefficient markets.

(a)Discuss the common idea behind arbitrage strategies. What are the potential risks of trading on an apparent arbitrage opportunity? What are the differences across the three types of arbitrage strategies discussed in class?

(b)Discuss the potential drivers of trading strategies commonly employed by global macro investors and managed futures traders.

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