Determine which trades are most likely to exhibit the greatest execution risk and market impact. Justify each selection.

Last year, Larry Sailors left his trading position at Valley Ranch Partners, a multi-strategy hedge fund, to join North Circle Advisors. Discussing his job experiences with a colleague, Sailors remarks that, prior to starting at North Circle, he didn’t fully appreciate the significant differences in trading motivations between the two firms and how such motivations feed into trade strategy. In particular, he notes the following trade characteristics:

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Determine which trades are most likely to exhibit the greatest execution risk and market impact. (Circle one in each column) Execution Risk ABC DEF XYZ Market Impact ABC DEF XYZ Justify each selection.