Behavioural finance specialist may concede that there are no easy profits but argue b) that arbitrage is costly and sometimes slow-working, so that the deviations from fair value may persist. The "no...

Extracted text: Behavioural finance specialist may concede that there are no easy profits but argue b) that arbitrage is costly and sometimes slow-working, so that the deviations from fair value may persist. The "no free lunch" principle gives financial managers lessons of market efficiency. Discuss any four (4) lessons of market efficiency and give an example showing the lesson's relevance to financial managers.