Which of the following(s) is (are) the characterization of dealer market? It improved market efficiency because dealers provide continuous bid and ask prices for securities. The dealer does not hold an inventory of securities. The presence a dealer market does not affect market efficiency because search costs are still high. It is time-consuming to search for a fair deal.

Which of the following(s) is (are) the characterization of dealer market? It improved market efficiency because dealers provide continuous bid and ask prices for securities. The dealer does not hold an inventory of securities. The presence a dealer market does not affect market efficiency because search costs are still high. It is time-consuming to search for a fair deal.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Rigorously define the rather vague idea of ‘beating the market’ with reference to the Efficient Markets Hypothesis and the standard techniques used to try to ‘beat the market’.
Free markets work best when: a) Buyers and sellers have freedom to make choices. b) There are only a few buyers or sellers. c) The seller is in possession of critical information needed by the buyer to analyze the trade-offs of a choice. d) None of the above.
Company X is more exposed to market risk than Company Y. Company X can compensate for this by using less financial leverage. As a consequence, the uncertainty of both firms' anticipated EBITS could be similar. * Correct O Wrong
If the security market is efficient in the weak form, then it is impossible to consistently outperform the market by using technical analysis, which tries to find security mispricing by analyzing historical security price data it is impossible to consistently outperform the market by using fundamental analysis, which tries to find security mispricing by analyzing non-price public information it is impossible to consistently outperform the market by using inside information it is impossible to consistently outperform the market by using technical analysis, fundamental analysis or inside information
All else equal, an increase in the information asymmetry between informed traders and liquidity providers (limit order traders) is associated with: a. An increase in limit order book depth b. A decrease in the bid-ask spread c. An increase in the profitability of liquidity provision d. All of the above e. None of the above
Arbitrage is the practice of making money by simultaneously buying in one market and selling in another. It takes advantage of price differences between the two or more markets. Give an example and explain how is this possible. Give enough detail that we can understand the basics of the transaction.
If you are worried that a panicked market might causethe price of one of your stocks to plunge, what type ofsell order could you use with your broker to limit yourlosses?
Which of the following limits the market from becoming a fully efficient market? New information takes time to process. Obtaining new information is costly. The existence of closed end investment companies. Both a. and b. are correct. All of the above answers are correct. None of the above answers is correct.
Behavioural finance is arguably most useful in explaining asset prices when there are significant numbers of “noise traders” and limits to arbitrage. Why is this so?
Markets are efficient when prices adjust rapidly to new information, continuous markets exist, and large dollar trades can be absorbed without large price movements. True or False

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