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9. What role does the transaction cost (order processing and inventory) spread component play? a. It compensates dealers for their normal costs of doing business.
9. What role does the transaction cost (order processing and inventory) spread component play? a. It compensates dealers for their normal costs of doing business. 10. According to asymmetric information models, uninformed traders learn information about security values by observing theorder flow. In particular, a. Greater time between trades means lower likelihood of informed trading
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