Which of the Following Is the Best Definition for the Concept

question 31

Multiple Choice

Which of the following is the best definition for the concept of efficient capital market?

• A) The excess return required from an investment in a risky asset over a risk-free investment.
• B) Market in which security prices reflect available information.
• C) A symmetric, bell-shaped frequency distribution that can be defined by its mean and standard deviation.
• D) The average compound return earned per year over a multi-year period.
• E) The hypothesis is that actual capital markets are efficient.

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Definitions:

Sand, Gravel

Natural aggregate materials consisting of fine particles (sand) and coarse particles (gravel), used in construction and as soil components.

Cement

A binder, a substance used in construction that sets, hardens, and adheres to other materials, binding them together, typically made from limestone and clay.

Rocky Mountain Area

A major mountain range in western North America, extending from northern Canada to New Mexico.

Gulf Coast Area

A geographic region along the coastline of the Gulf of Mexico, known for its distinct ecological and cultural attributes.