Semistrong Form Market Efficiency States That the Value of a Security

question 42

Multiple Choice

Semistrong form market efficiency states that the value of a security is based on:

• A)all public and private information.
• B)historical information only.
• C)all publicly available information.
• D)all publicly available information plus any data that can be gathered from insider trading.
• E)random information with no clear distinction as to the source of that information.

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Definitions:

Private Foundations

Nonprofit entities that typically donate funds and support to other charitable organizations, funded by a single source, like a family or corporation.

Single Donor

Refers to contributions received from one individual, organization, or entity to support a particular cause or organization.

Critical Mass

A threshold level of support, participation, or resources required to sustain a venture or initiate a significant change or action.

Sectors

Broad categories that represent segments of the economy or society, such as public, private, and nonprofit sectors, each with distinct characteristics and functions.