Modern Economy

Volume 9, Issue 4 (April 2018)

ISSN Print: 2152-7245   ISSN Online: 2152-7261

Google-based Impact Factor: 0.74  Citations  h5-index & Ranking

Beyond the No Free Lunch Principle: A New Combination of Arbitrage and Investment

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DOI: 10.4236/me.2018.94046    690 Downloads   1,491 Views  
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ABSTRACT

In the financial market, within both extremities of asset investment and arbitrage, there are sufficient rooms to contain something else other than speculation. The first aim of this study is thus to introduce a new sector which although cannot violate the common sense of “no free lunch” as can arbitrage, still is capable of surmounting general beliefs about the trade-off between risk and return that accompanies speculation. The second aim of this study is intended to reduce the ingredients of unfair games in the financial market.

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Yu, Y. (2018) Beyond the No Free Lunch Principle: A New Combination of Arbitrage and Investment. Modern Economy, 9, 711-718. doi: 10.4236/me.2018.94046.

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