Why this argument would or wouldnt convince you

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Reference no: EM133318841

Question: Explain three types of risks and costs faced by an economic agent who tries to arbitrage:

Fundamental risk
Implementation costs
Noise trader risk

Suppose a fund manager offers you to invest in his fund because in the last three years the fund has delivered higher returns on investment than the stock market index. Explain why this argument would or wouldn't convince you?

Reference no: EM133318841

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