An Efficient Stock Market Means That

question 232

Multiple Choice

An efficient stock market means that:

• A) it is difficult to outperform the market, since stock prices convey all relevant public information about a company.
• B) traders with inside information cannot even outperform market averages.
• C) new information is slowly reflected in stock prices.
• D) All of the answers are correct.

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Definitions:

High Rate of Failure

A situation where there is a significant percentage of attempts or endeavors that do not succeed, often used in the context of startups or new projects.