1. Which of the following statements is most correct?

	A.	The bid-ask spread is a measure of the expected market impact of a very large trade.
	B.	The bid-ask spread is highest for the most liquid stocks.
	C.	Occasionally the bid-ask spread is negative. This implies an arbitrage possibility.
	D.	The bid-ask spread in dollars is the difference between the price at which a share can be bought and the price at which it can be sold.
	E.	Both A and D are correct.
	F.	Both B and D are correct.
	G.	Both C and D are correct.

2. If you short-sell a stock and it pays a dividend while your short sale is open, then

	A.	You have to pay the dividend to the lender
	B.	You receive the dividend
	C.	Receiving the dividend will, in general, increase the return on your investment.
	D.	Receiving the dividend will, in general, decrease the return on your investment.
	E.	Options A and C
	F.	Options A and D
	G.	Options B and C
	H.	Options B and D