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According to the Amihud and Mendelson (1986) model, all else being equal, if relatives spreads increase, this should: a. Increase prices b. Decrease prices c.

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According to the Amihud and Mendelson (1986) model, all else being equal, if relatives spreads increase, this should: a. Increase prices b. Decrease prices c. Increase trading frequency d. None of the above According to Harris, precommitted traders: a. Other b. Offer liquidity to obtain better prices for trades they want to do c. Trade on price discrepancies between two or more markets d. Complete quick round-trip trades without assuming much inventory risk e. Buy and sell misvalued instruments

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