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could anyone give me a step by step solution, thank you! Question 10 Not yet answered Consider a Kyle (1985) model set-up in which the
could anyone give me a step by step solution, thank you!
Question 10 Not yet answered Consider a Kyle (1985) model set-up in which the true value of the stock is $70.00, the unconditional variance of the true value is 10 and the variance of uninformed trading is 16,000. If the expected value of the stock is $80.00 without private information, the equilibrium level of informed trading demand is: Marked out of 1.00 P Flag question Select one: O a. -0.01 shares O b.-16,000.00 shares c. Other O d. -0.25 shares O e. -400.00 shares Consider a Kyle (1985) model set-up in which the true value of the stock is $70.00, the unconditional variance of the true value is 10 and the variance of uninformed trading is 16,000. If the expected value of the stock is $80.00 without private information, the insider's equilibrium expected profit is: Select one: a. $200.00 b. $320,000.00 c. $400.00 d. Other e. $0.00 Consider a Kyle (1985) model set-up in which the true value of the stock is $70.00, the unconditional variance of the true value is 10 and the variance of uninformed trading is 16,000. If the expected value of the stock is $80.00 without private information, the dealer's equilibrium expected profit is: Select one: a. $400.00 b. Other c. $0.00 O d. $320,000.00 e. $200.00 Question 10 Not yet answered Consider a Kyle (1985) model set-up in which the true value of the stock is $70.00, the unconditional variance of the true value is 10 and the variance of uninformed trading is 16,000. If the expected value of the stock is $80.00 without private information, the equilibrium level of informed trading demand is: Marked out of 1.00 P Flag question Select one: O a. -0.01 shares O b.-16,000.00 shares c. Other O d. -0.25 shares O e. -400.00 shares Consider a Kyle (1985) model set-up in which the true value of the stock is $70.00, the unconditional variance of the true value is 10 and the variance of uninformed trading is 16,000. If the expected value of the stock is $80.00 without private information, the insider's equilibrium expected profit is: Select one: a. $200.00 b. $320,000.00 c. $400.00 d. Other e. $0.00 Consider a Kyle (1985) model set-up in which the true value of the stock is $70.00, the unconditional variance of the true value is 10 and the variance of uninformed trading is 16,000. If the expected value of the stock is $80.00 without private information, the dealer's equilibrium expected profit is: Select one: a. $400.00 b. Other c. $0.00 O d. $320,000.00 e. $200.00Step by Step Solution
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