Comical Response

Thought id share this. So one of my buds works for a fund of funds group in chicago and had a phone interview with a kid from UVA. So he begins asking the kid what an arbitrage was and wanted an example of a possible strategy and the kid gives a mcdonalds example. LoL i guess he said something along the lines of instead of purchasing the ten piece for $4.39 you can make a profit by buying three $1 4 piece. Just shows how much the Business week rankings are a joke.

 

That example is not really arbitrage. Arbitrage is a riskless profitable action. Trying to resell mcnudgets to random people on the street is not riskless, who would buy mcdonalds from some dude on the street.

HOWEVER, if the guy gets an agreement beforehand (let's say from his friends) that they will buy them from him THEN it is true arbitrage.

 
Best Response

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