If Capital Markets Are Efficient, Then ______________

question 320

Multiple Choice

If capital markets are efficient, then ______________.

• A) there is no reason to believe that prices are too high or too low
• B) it is possible to profit regularly from publicly available information
• C) prices will adjust slowly when reacting to new information
• D) it is not possible to make money by playing the stock market
• E) historical price trends will give you a good idea of where prices are headed in the future

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Definitions:

Volunteer Work

involves performing tasks or providing services for the benefit of others or the community, without financial compensation.

Partnership Property

Assets co-owned by partners in a business partnership, where each partner has an interest in these assets in relation to their investment or agreement.

Court

An institution where legal disputes are adjudicated by judges or a jury.

Large Machine

A substantial and typically sophisticated piece of mechanical equipment, often used in industrial or manufacturing processes.