The Various Lessons of Market Efficiency Are

question 43

Multiple Choice

The various lessons of market efficiency are:
I. Markets have no memory
II. Trust market prices
III. Read the entrails
IV. There are no financial illusions V) The do-it yourself alternative
VI. Seen one stock, seen them all

• A) I and II only
• B) I, II, III and IV only
• C) I, II, III, IV and V only
• D) I, II, III, IV, V and VI

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Definitions:

Finance Department

A division within an organization responsible for managing financial actions including budgeting and investment strategies.

CFO

Chief Financial Officer, a senior executive responsible for managing the financial actions of a company.

Collateralized

The provision of an asset or property as security for the repayment of a loan, reducing the risk for the lender.

Business Loan

A loan specifically intended for business purposes, helping companies finance operations, equipment, expansion, or other business needs.