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Studies of liquidity spreads in security markets have shown that A. illiquid stocks earn higher returns than liquid stocks. B. both liquid and illiquid stocks

Studies of liquidity spreads in security markets have shown that

A. illiquid stocks earn higher returns than liquid stocks.

B. both liquid and illiquid stocks earn the same returns.

C. illiquid stocks are good investments for frequent, short-term traders.

D. liquid stocks earn higher returns than illiquid stocks.

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