Which of the Following Statements Is Most Correct

question 88

Multiple Choice

Which of the following statements is most correct?

• A) Semistrong-form market efficiency means that stock prices reflect all public information.
• B) An individual who has information about past stock prices should be able to profit from this information in a weak-form efficient market.
• C) An individual who has inside information about a publicly traded company should be able to profit from this information in a strong-form efficient market.
• D) Statements a and c are correct.
• E) All the statements above are correct.

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Definitions:

Business Communication

The sharing of information between people within and outside an organization that is performed for the commercial benefit of the organization.

Scope

The extent or range of view, outlook, application, operation, or effectiveness of an object or concept.

Business Message

Any form of communication used within a professional setting to convey information, decisions, or requests.

Informational Cue

Signals or hints within a communication that provide additional, often nonverbal, information to the receiver.