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:

Weber

Max Weber, a German sociologist, is known for his theories on bureaucratic management and organizational structure, emphasizing rationality, efficiency, and discipline.

Structural Approaches

Methods or frameworks that focus on the organization, arrangement, and interrelationship of parts within a system, often used in the study of social structures or architectural planning.

Bureaucratic Organisation

An organization structured on formal procedures, hierarchy, and a clear division of labor, which emphasizes control and standardization.