1. If the market is informationally efficient which one of the following is advisable?

		Active portfolio management
		Passive portfolio management

2. The bid to ask spread tends to be narrow when:

		the price volatility is high.
		the price volatility is small.

3. Trades that occur in stock exchanges are considered to be:

		Primary market transactions.
		Secondary market transactions.
		Private placement transactions.
		Secondary offerings by the issuing firms.