Question 1 is based on the above screenshots.

1. Suppose that you are an investor looking to invest $50,000 in a homebuilder stock. You have narrowed down your search to two candidates, Lennar (LEN) and Toll Brothers (TOL). You do not have a particular opinion about either stock, but want to buy the more liquid stock. First, you compute the percentage spread, that is, the difference between the best ask and best bid, divided by the midpoint (the average of the best ask and best bid). Which stock appears to be more liquid in terms of spread?

Q . TOL Toll Brothers, Inc. Last Chg 38.54 D -0.68 Date/Time Range FROM 04/22/2019 J 1 Day Ago %Chg Bid Ask Vol CVol -1.73% 38.53 38.56 100 458,032 Date Time BidExch BSize Bid 04/22/19 11:59:44 EDGX 1 38.450 04/22/19 11:59:44 ARCA 1 38.520 04/22/19 11:59:43 NYSE 3 38.530 04/22/19 11:59:43 Composite 1 38.540 04/22/19 11:59:41 NASDAQ OMX1 36.670 04/22/19 11:59:41 NASDAQ 1 38.530 04/22/19 11:59:41 IEXG 1 38.540 04/22/19 11:59:41 EDGA 1 38.540 04/22/19 11:59:41 BATS Y 1 38.500 04/22/19 11:59:41 Chicago 1 38.510 04/22/19 11:59:40 National 1 38.540 04/22/19 11:59:27 BATS 1 38.540 USD REGULAR Turnover VWAP 17721.92 38.69 Ask A Size AskExch 38.580 1 EDGX 38.580 1 ARCA 38.580 2 NYSE 38.580 2 Composite 38.620 1 NASDAQ OMX BX 38.590 2 NASDAQ 38.580 1 EXG 38.620 2 EDGA 38.610 1 BATS Y 38.580 1 Chicago 40.360 1 National 38.580 2 BATS 20:00:00 Submit X LEN Lennar Corporation Class A Last Chg %Chg Bid Ask Vol 52.41 D -0.50 -0.95% 52.40 52.42 100 Date/Time Range Date Time BidExch FROM 04/22/19 11:58:34 IEXG 04/22/19 11:58:34 Chicago O 04/22/2019 - 04/22/19 11:58:33 Composite 04/22/19 11:58:33 EDGX 1 Day Ago 04/22/19 11:58:33 EDGA 04/22/19 11:58:32 NASDAQ OMX 20:00:00 04/22/19 11:58:32 NYSE Submit X 04/22/19 11:58:32 BATS 04/22/19 11:58:32 NASDAQ 04/22/19 11:58:32 National 04/22/19 11:58:32 ARCA 04/22/19 11:58:32 BATS Y CVol 706,701 BSize Bid 52.370 1 52.390 3 52.370 52.360 52.370 3 52.300 52.370 52.370 2 52.370 52.370 52.370 1 52.330 USD REGULAR Turnover VWAP 36980.01 52.33 Ask A Size AskExch 52.50) 2 EXG 52.40) 1 Chicago 52.40) 3 Composite 52.42) 1 EDGX 52.40) 1 EDGA 52.40) 1 NASDAQ OMX BX 52.40) 3 NYSE 52.410 2 BATS 52.40) 3 NASDAQ 52.44) 1 National 52.40) 2 ARCA 52.43) 1 BATSY