Which of the Following Statements Is Correct

question 80

Multiple Choice

Which of the following statements is correct?

• A) If the market is strong-form efficient it must also be weak-form efficient and semi-strong efficient.
• B) There is evidence to suggest that the market is strong-form efficient because corporate insiders have made extraordinary profits by trading on inside information.
• C) The Efficient Market Hypothesis states that security prices will be based on their expected return.
• D) none of these choices are correct.

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Definitions:

Long-Term Financing

A method of financing that is typically used for investments or purchasing assets that have a lifespan of more than a year.

Human Resources Department

The division within a business that manages employee relations, recruitment, training, and benefits.

Employment

A relationship between an employer and an employee where the employee provides labor in exchange for compensation under agreed terms.

Warranty Expense

Costs anticipated by a company for the repair or replacement of defective products during the warranty period, treated as a liability until used.