Studies Show That the Bid-Ask Spread for the Least Liquid

question 11

Multiple Choice

Studies show that the bid-ask spread for the least liquid stocks may be as high as ______.

• A) 3%
• B) 5%
• C) 9%
• D) 12%

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Definitions:

Salary

Compensation for employment in the form of periodic payments, often annual or monthly, for professional or office work.

Indicator Variables

Variables used in statistical models to label subgroups, often taking values 0 or 1 to indicate the absence or presence of some categorical effect.

Categorical Variable

A variable that represents categories or groups with qualitative differences, such as gender, nationality, or brand preference.

Regression Model

A statistical technique used to model and analyze the relationships between variables and how one variable's change is associated with the change of another.