If the Financial Markets Were Not Efficient

question 15

Multiple Choice

If the financial markets were not efficient,

• A)all investors would profit
• B)prices indicate the proper valuation of securities
• C)prices would adjust rapidly
• D)an investor may consistently outperform the market

---

Definitions:

Background Noise

Unwanted ambient sounds that interfere with or distract from the intended audio or environment.

Unreliable

Not consistently dependable or trustworthy, often lacking accuracy or soundness in performance or result.

Open-Ended Question

A type of question formulated to encourage a full, meaningful answer using the subject's own knowledge and/or feelings, without constraint.

Intersection

A point where two or more roads meet or cross each other.