Why then would alpha co. be more likely to present limits

Reference no: EM132977887

Question: 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.?

- In each of the past 30 years, Sam has deposited $4,500 in his savings account at the beginning of each year. A risk-averse investor, during that period his conservative investment choices averaged a 4.65% annual return. Hugo made the same sized deposits in his own account at the beginning of each year, but he was more of a risk-seeker. Over the same 30 year period, due to his more aggressive investment choices Hugo averaged an investment return of 6.12%. How did Sam's account fare compared to Hugo's, in terms of future value? Did Sam make poor choices? Discuss.

Reference no: EM132977887

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