Which of the Following Is Implied by the Evidence Regarding

question 116

Multiple Choice

Which of the following is implied by the evidence regarding market efficiency?

• A) Prices in well-organized capital markets are unfair.
• B) There is a simple way to identify mispriced stocks when they exist.
• C) Prices don't respond rapidly to new information.
• D) It is difficult to predict future price movements based on public information.
• E) Insiders cannot make money from their private information.

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Definitions:

Earth's Tilt

The angle between Earth's rotational axis and its orbital plane around the sun, influencing seasonal variations.

Global Climate

The overall patterns of temperature, precipitation, humidity, wind, and seasons on a planet-wide scale.

Glaciers

Massive, moving bodies of ice that form on land through the accumulation and compaction of snow.

Tide

The periodic rise and fall of sea levels caused by the gravitational interactions between the Earth, Moon, and Sun.