Which of the following statements about arbitrage and market anomalies
is most accurate
A. Investors of the funds that arbitrageurs and traders use are generally
too patient and fail to remove funds in a timely manner when trades go against
them.
B. Arbitrageurs have more capital at their disposal than they require
enabling them to pursue any security mispricing.
C. In pairs trading, where an arbitrageur purchases the underpriced security
and shorts the overpriced security, stock-specific risk remains.