Which of the Following Statements About Market Efficiency Is Generally

question 46

Multiple Choice

Which of the following statements about market efficiency is generally considered to be true?

• A) For inefficient markets, security prices will rapidly reflect new information.
• B) It is easy to forecast the direction of future security price changes in the short run.
• C) Short-run price changes occur independent of information coming to the market.
• D) On average, most stocks are mispriced.
• E) In the absence of legal constraints, investors with inside information will be able to earn excess returns.

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Definitions:

Creative Assets

Materials such as images, videos, and texts used in marketing and advertising to represent a brand's identity and message.

Strategic Planning

A systematic process for envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Financial Resources

Assets in the form of cash, credit, and other investments available to a person or organization to fund its operations, projects, or investments.

Human Resources

Human Resources (HR) is the department within an organization that manages all matters related to employees, including hiring, training, benefits, and workplace culture.