Question 1: Some of the assumptions made by classical finance theory, are in fact dangerously at odds with the way in which financial markets actually work. One of the most important laws of economics, the law of one price, is regularly violated in equity, bond and foreign exchange markets.
What is the writer talking about?
Question 2: Contrary to standard belief, noise traders, or irrational market participants, can not only survive into the long run, but may under certain circumstances actually come to dominate the market place.
Do you agree with this statement? Why or why not?
Around 500 words, two reference