Which of the Following Would Be Inconsistent with an Efficient

question 123

Multiple Choice

Which of the following would be inconsistent with an efficient market?

• A) Information arrives randomly and independently.
• B) Stock prices adjust rapidly to new information.
• C) Price changes are independent.
• D) Price changes are random.
• E) Price adjustments are biased.

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Definitions:

Precise Gripping

The act of seizing or holding firmly with accuracy.

Crocodilians

Large aquatic reptiles that include crocodiles, alligators, caimans, and the gharial, known for their tough skin, sharp teeth, and strong jaws.

Reptile Group

A category of ectothermic, vertebrate animals primarily characterized by their ability to lay eggs on land and having scales or scutes.