which one is least accurate about perfectly efficient pricing? restrictions on short sales cause overvalued stocks to be relatively more common than undervalued stocks arbitrage trading is characterized by too much capital chasing too few pricing inefficiencies, limiting the ability of arbitrage to bring about fully efficient prices the returns to trading strategies based on analysis of new information must be sufficient to compensate for the time and effort required to analyze new information they all sound so right…
i’d go with arbitrage trading is characterized by too much capital chasing too few pricing inefficiencies, limiting the ability of arbitrage to bring about fully efficient prices as too much capital chases pricing inefficiencies, all potential arbitrage transactions would end up being executed thus leading to efficient prices any trading restrictions (e.g. short sales) would hinder price discovery the last statement is obviously accurate
bingo. thanks for the clear explanation.
offtopic If you refer to “breakeven” the BA TI calculator can get the breakeven according to the manual.