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Problem 4. (ptj Explain briey the liquidity.P measures: Quoted Spread, Effective Spread and Realized Spread. What is their practical relevance? Explain the meaning of the

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Problem 4. (ptj Explain briey the liquidity.P measures: Quoted Spread, Effective Spread and Realized Spread. What is their practical relevance? Explain the meaning of the decomposition (1) EectiveSpread = RealisedSpread + PriceImpact and how the last term is a measure of the adverse selection

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