Which of the Following Is NOT Correct About Market Efficiency

question 69

Multiple Choice

Which of the following is NOT correct about market efficiency?

• A) The EMH says that actual capital markets, such as the TSX, are efficient.
• B) Strong form efficiency says all information of any kind is reflected in stock prices.
• C) Semi-strong form efficiency says all public and private information is reflected in stock prices.
• D) Weak form efficiency says studying past prices in an attempt to identify mispriced stocks is futile.
• E) The price a firm obtains when it sells its stock in an efficient market is a fair price, in the sense that the price reflects available information about the stock.

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Definitions:

White-Collar Crime

Non-violent crime, usually involving deception or breach of trust, committed by individuals in professional roles or high social status.

Multi-Factor Approach

A method or strategy that employs multiple factors or variables in the analysis, decision-making, or problem-solving process, considering a broader range of influences.

Single-Factor Theory

An explanation for a phenomenon that identifies one dominant cause or factor.

Democide

The murder of any person or people by a government, including genocide, politicide, and mass murder.