Which of the Following Is NOT an Assumption of Market

question 34

Multiple Choice

Which of the following is NOT an assumption of market efficiency?

• A) Instruments denominated in other currencies are perfect substitutes for one another.
• B) Transaction costs are low or nonexistent.
• C) All relevant information is quickly reflected in both spot and forward exchange markets.
• D) All of the above are true.

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Definitions:

Electroencephalography

A non-invasive method that records electrical activity in the brain through electrodes placed on the scalp.

Computed Tomography

A diagnostic imaging technique that uses computer-processed X-rays to produce detailed cross-sectional images of the body.

Electroencephalography

A medical imaging technique that records electrical activity in the brain using electrodes placed on the scalp.

Computed Tomography

A medical imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.