In an Efficient Market, Prices Appear to Move Randomly Because

question 27

Multiple Choice

In an efficient market, prices appear to move randomly because

• A) the number of investors who can forecast prices correctly is too small to have any effect.
• B) investors do not process new information correctly.
• C) insider trading has an unpredictable effect on share prices.
• D) only new information affects share prices.

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Definitions:

Diet

The sum of food consumed by an organism or group, affecting health and nutrition.

Antioxidants

Substances that can prevent or slow damage to cells caused by free radicals, unstable molecules that the body produces as a reaction to environmental and other pressures.

Vitamin E

A group of fat-soluble compounds that have antioxidant properties, protecting cells from the damage caused by free radicals.

Vitamin C

An essential nutrient that acts as an antioxidant, supports the immune system, and is necessary for the synthesis of collagen.