________ Is an Example of Explicit Transaction Costs

question 42

Multiple Choice

________ is an example of explicit transaction costs.

• A)Market impact
• B)Bid-ask spread
• C)Missed trade opportunity costs
• D)Brokerage

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Definitions:

Nearest 0.01%

Rounding or approximating a numerical value to the closest hundredth of a percent.

Equivalent Interest

The equal effectiveness of different interest rates with respect to compounding periods over a specified period.

Nearest 0.01%

Rounding or approximating a numerical value to the closest one-hundredth of a percent.

Interest Rate

The percentage charged on a loan or paid on an investment for the use of money, calculated on an annual basis.