The Size of the Spread on Stocks That Have Relatively

question 58

Multiple Choice

The size of the spread on stocks that have relatively little trading is

• A) smaller to reflect the lower degree of uncertainty.
• B) the same as that of stocks with higher volumes of trading.
• C) wider to reflect the higher degree of uncertainty.
• D) not affected by trading volume.

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Definitions:

Descriptive Term

A phrase or word used to describe the characteristics or qualities of something.

Diene

Organic compounds containing two double bonds, often involved in polymerization reactions.

Hydrogenation

The chemical reaction that adds hydrogen (H2) across unsaturated bonds in molecules, such as converting alkenes to alkanes.

ΔH°

The standard enthalpy change of a reaction, measured under standard conditions (1 atm, 298.15K), representing the difference in enthalpy between products and reactants.