The Efficient Markets Hypothesis Suggests That If an Unexploited Profit

question 5

Multiple Choice

The efficient markets hypothesis suggests that if an unexploited profit opportunity arises in an efficient market,

• A) it will tend to go unnoticed for some time.
• B) it will be quickly eliminated.
• C) financial analysts are your best source of this information.
• D) prices will reflect the unexploited profit opportunity.

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Definitions:

Semicircular Canal

Structures in the inner ear involved in maintaining balance and sensing motion.

Cochlea

A spiral-shaped, fluid-filled inner ear structure responsible for transforming sound waves into electrical signals that the brain interprets as sound.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is crucial for sound transduction, leading to the perception of sound.

Vestibular Sac

A part of the inner ear involved in balance, helping to sense changes in head position and movement.