If a Market Is Efficient, Then the Difference Between the Market

question 16

Multiple Choice

If a market is efficient, then the difference between the market value of an investment and its cost is:

• A) Zero.
• B) Positive and greater than 1.
• C) Equal to the risk premium.
• D) Equal to the net present value of the cash inflows.
• E) Equal to the risk-free rate of return.

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Definitions:

Multiple Versions

Having several different versions of a document, software, or system, often saved or managed for backup, testing, or development purposes.

Start Menu

The primary menu in Windows operating systems that provides access to programs, folders, and system settings.

Playlist

A collection of audio or video files that can be played back on a media player sequentially or in a shuffled order.

Grouped

In databases or software applications, it refers to the organization of data by specific categories for easier analysis and management.