G5

Which of the following statement(s) is/are true? 1. Generally, the higher the turnover ratio, the more liquid the secondary stock market, indicating ease in trading. II. Generally, higher liquidity stocks have lower required returns, all else equal. III. Relatively low turnover ratios indicate poor liquidity, all else equal. a) I only d) I, II & III b) II only e) None of the above answers c) III only