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Determine how the bid-ask spreads of a stock will change under each of the following scenarios. Explain why in one or two sentences: a) When
Determine how the bid-ask spreads of a stock will change under each of the following scenarios. Explain why in one or two sentences:
a) When the volumes of trades are high
b) When the volatility of equilibrium prices is high
c) When competition between market makers is high
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