Question: A key implication of the Kyle (1985) model is that, for dealers to remain in business, the expected profits from trading with noise traders must

A key implication of the Kyle (1985) model is that, for dealers to remain in business, the expected profits from trading with noise traders must be:

a.

Greater than the expected losses from trading with informed traders
b.

Equal to the expected losses from trading with informed traders
c.

Less than the expected losses from trading with informed traders

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