1. One of the objectives of corporate governance reform is to,

1. introduce expensive and burdensome accounting reforms.
2. provide taxpayer financing for corporate raiders to strengthen the discipline of the marketplace.
3. strengthen the protection of outside investors from expropriation by managers and controlling insiders.

1. I only
2. II only
3. III only
4. I and III only
5. None of the above choices

2. 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.
2. Generally, higher liquidity stocks have lower required returns, all else equal.
3. Relatively low turnover ratios indicate poor liquidity, all else equal.

1. I only
2. II only
3. III only
4. I, II & III
5. None of the above choices