Question Title * 1. What does λ measure in Kyle’s Model? Estimated amount of public information Order flow necessary to increase or decrease the bid price by $1. Market depth Question Title * 2. How does a smaller estimated amount of private information impact the price of the trade? Increase Decrease Question Title * 3. A deeper market will have a value of Kyle’s lambda (λ)? Smaller positive Larger positive Smaller negative Larger negative Done
