Wide bid-ask spread implies

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Reference no: EM131497526

1. Wide bid-ask spread implies which of the following?

A. Decreased broker profit margins

B. Increased certainty in the stock

C. Increased risk in the stock

D. Absolutely nothing

2. True or False

Suppose Randy Jones plans to invest $1,000. He can earn an effective annual rate of 5% on Security A, while Security B has an effective annual rate of 12%. After 11 years, the compounded value of Security B should be somewhat less than twice the compounded value of Security A. (Ignore risk, and assume that compounding occurs annually.)

Reference no: EM131497526

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