According to the Theory of Market Efficiency

question 10

Multiple Choice

According to the theory of market efficiency,

• A)Prices of actively traded shares will be overvalued in an efficient market
• B)Prices of actively traded shares will be undervalued in an efficient market
• C)Prices of actively traded shares will be the same as their true values in an efficient market
• D)Prices of actively traded shares can be undervalued or overvalued in an efficient market

---

Definitions:

IFRS

International Financial Reporting Standards, a set of accounting principles that dictate how companies' financial statements are prepared.

Initial Franchise Fee

A one-time payment made by a franchisee to the franchisor when a new franchise agreement is signed, covering rights to use trademarks, systems, and support.

Substantial Performance

A legal principle indicating that a party has fulfilled enough of its contract obligations to warrant payment, despite minor issues.

Employee Training

Programs and activities aimed at increasing the skills, knowledge, and competencies of employees to improve their performance and efficiency.