Which of the Following Statements About Efficient Markets Is Correct

question 39

Multiple Choice

Which of the following statements about efficient markets is correct?

• A)In strong- form efficiency,all available information is rapidly incorporated into market prices.However,superior returns can consistently be earned on a share through lots of hard analytical work.
• B)In strong- form efficiency,the returns on a firm's bonds and shares should be identical.
• C)In weak- form efficiency,all public information is rapidly incorporated into market prices.
• D)In weak- form efficiency,analysing past price history of a company's shares will not enable an investor to earn an above- normal rate of return on the shares in the future.

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Definitions:

Unmanned Surveillance

The monitoring of areas, activities, or people using automated or remotely controlled equipment, such as drones or cameras.

Informational Constraint

Restrictions or limitations placed on data, such as access permissions or the structure of information.

Controlled Tests

Controlled tests are experiments or tests conducted under controlled conditions to isolate variables and determine specific outcomes.

Arguing from Ignorance

A fallacy that occurs when someone argues that a statement is true simply because it has not been proven false, or vice versa.