With Strong-Form Market Efficiency

question 12

Multiple Choice

With strong-form market efficiency:

• A)it would not be possible to earn abnormally high returns by trading on private information.
• B)investors who have access to inside or private information will be able to earn abnormal returns.
• C)the price of a security in the market reflects all public information only.
• D)None of the above.

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Definitions:

Pennsylvania System

A penal system, also known as the separate system, developed in the 19th century, focusing on solitary confinement and individual penance as a form of rehabilitation.

General Contractor

A principal contractor who is responsible for the oversight of a construction project, managing subcontractors, and the coordination of the work on site.

Deed of Trust

A legal document that secures a real estate transaction by transferring the title of the property to a trustee until a loan is paid in full.

Party

A person or entity involved in a legal transaction or case; can also refer to one side of a contractual agreement.