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LOS i: Explain the use of econometric methods in pre-trade analysis to estimate implicit transaction costs.
Q1. Which of the following trades would be predicted to have the highest trading costs using an econometric model?
A) A small buy order in an upward trending market.
B) A large buy order in a downward trending market.
C) A large buy order in an upward trending market.
Q2. Which of the following variables is NOT typically used in econometric models to assess trading costs?
A) Market model alpha.
B) Risk.
C) Momentum.
Q3. Which of the following is TRUE regarding econometric models? Econometric models:
A) are only useful for forecasting trading costs.
B) are used to forecast trading costs and assess trading effectiveness.
C) are not useful for forecasting trading costs or assessing trading effectiveness. | 
发表于 2009-4-10 11:39
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