Which One of the Following Statements Is Correct Concerning Market

question 58

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A) Real asset markets are more efficient than financial markets.
• B) If a market is efficient, arbitrage opportunities should be common.
• C) In an efficient market, some market participants will have an advantage over others.
• D) A firm will generally receive a fair price when it sells shares of stock.
• E) New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock.

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Definitions:

Deep Laceration

A severe cut or tear in the skin or flesh that is often deeper than it is wide, requiring professional medical attention.

Ototoxicity

The property of being toxic to the ear, specifically the cochlea or auditory nerve and sometimes the vestibular system, leading to hearing loss or imbalance.

Tympanic Membrane

The thin layer of tissue that separates the outer ear from the middle ear, commonly referred to as the eardrum.

Cerumen

The scientific term for earwax, a substance produced in the ear canal that protects and lubricates the ears.