Question: Question 1 0 Flagquestion Noise traders Noise traders are the primary source of dealer spreads. A larger number of noise traders in the market will
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Noise traders
Noise traders are the primary source of dealer spreads. A larger number of noise traders in the market will lead to wider spreads as noise traders weaken the ability of prices to efficiently incorporate information into security prices. Without noise traders, spreads will narrow to zero. True or false?
Select one:
a False
b True
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