Another Way to State the Efficient Markets Condition Is: in an Efficient

question 91

Multiple Choice

Another way to state the efficient markets condition is: in an efficient market,

• A) unexploited profit opportunities will be quickly eliminated.
• B) unexploited profit opportunities will never exist.
• C) arbitragers guarantee that unexploited profit opportunities never exist.
• D) every financial market participant must be well informed about securities.

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Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, evokes a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Phobias

Intense, irrational fears of specific objects or situations, significantly impacting an individual's ability to function in daily life.