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Which of the following statements is most correct? Question 1 4 Answer a . Market makers profit from trading with noise traders but lose on
Which of the following statements is most correct?
Question Answer
a
Market makers profit from trading with noise traders but lose on their trades with informed traders.
b
Market marking is illegal.
c
Market makers try to avoid trading with noise traders as they may drive prices away from fundamentals.
d
Informed trading is illegal.
e
Market makers profit from trading with noise traders as well as informed traders.
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