He states that VWAP attempts to measure the price benchmark for a trade with greater precision than other measures. Furthermore, Larkin asserts that VWAP is not affected by market impact implicit costs.And, he concludes, VWAP’s greatest contribution is that it provides an objective measure of missed trade opportunity costs.
Larkin’s description of VWAP is most accurate with respect to:
1.opportunity cost
2. market impact.
3. price benchmarks.
Solution
C is correct. VWAP attempts to measure the price benchmark for a trade with greater precision than other measures. Missed trade opportunity costs are difficult to measure, and VWAP does little to resolve those difficulties. Market impact costs are similarly difficult to measure.
A is incorrect because market impact costs are difficult to measure.
B is incorrect because missed trade opportunity costs are difficult to measure, and VWAP does little to resolve those difficulties.
我的问题：老师 我认为描述中VWAP比其他作为基准更准确这个说法不对，忽略了很多成本；不受隐性成本影响这个说法正确；提供衡量未成交成本的这个说法肯定不对。可否请老师讲解一下正确答案？谢谢！
