If the Securities Market Is Strong-Form Efficient, Then

question 207

Multiple Choice

If the securities market is strong-form efficient, then:

• A) All securities should be correctly priced.
• B) Any mispricing's will exist only in small-company stocks.
• C) Any delayed market reaction to an announcement will be corrected within one week.
• D) Only insider information can provide a trading advantage.
• E) All investments in securities will have a positive net present value.

---

Definitions:

Morality

Principles concerning the distinction between right and wrong or good and bad behavior, often guided by personal, cultural, or societal norms.

Conventional Morality

A stage in moral development characterized by adherence to rules and standards of one's group or society.

Cultural Differences

Variations in the norms, values, beliefs, and practices among different groups, societies, or communities.

Lawrence Kohlberg

An esteemed psychologist from the US, widely acclaimed for his foundational theory on the different stages of moral growth.