An Efficient Financial Market Is One in Which

question 62

Multiple Choice

An efficient financial market is one in which

• A)transactions costs for trading securities are zero.
• B)all information available to market participants is reflected in market prices.
• C)all securities traded are very liquid.
• D)there are no taxes on the gains from trading securities.

---

Definitions:

Fallacy

A fault in logical judgment that causes an argument to be invalid or not based on sound reasoning.

Denying Antecedent

A logical fallacy involving the incorrect assumption that the falsehood of a premise invalidates the conclusion, particularly in conditional reasoning.

Hypothetical Syllogism

A logical argument involving two conditional statements and a conclusion that logically follows from them.

Formalize

The act of expressing an idea, argument, or process in a precise, often mathematical or logical, form.