1.) Consider the following statements:

• Statement A:Dealers buy securities, but they do not use a buy-and-hold strategy like the buy side.
• Statement B:When market makers are only being asked to buy and not to sell, the asset's market value seems to be decreasing.

Which of the statements given above is correct?

Select one:

a. Only statement A

b. Only statement B

c. Neither statement A nor B

d. Both statement A and B

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2.) Consider the following statements:

• Statement A:The sell side refers to the selling of investment securities when their prices are high.
• Statement B:Hedge funds have the purpose of creating portfolios that compliment the risk characteristics of other investments.

Which of the statements given above is correct?

Select one:

a. Only statement B

b. Both statement A and B

c. Only statement A

d. Neither statement A nor B

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3.) Consider the following statements:

• Statement A:Dealers opportunistically make trades when a favorable price is available.
• Statement B:A highly liquid asset will always involve a large bid-ask spread.

Which of the statements given above is correct?

Select one:

a. Neither statement A nor B

b. Only statement B

c. Only statement A

d. Both statement A and B