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.

---

Definitions:

Recognition

The cognitive process of identifying and acknowledging the familiarity of an object, person, or piece of information.

Recall

The mental process of retrieving information from the past.

Preschooler

A child who is in the developmental stage between toddlerhood and school age, typically between the ages of 3 and 5 years.

Random In Nature

Events or processes that occur without a predictable pattern, often described by probability distributions.