Capital Markets Are Said to Be Efficient

question 44

Multiple Choice

Capital markets are said to be efficient. This means _____.

• A) they process stock trades accurately and quickly
• B) the market provides quick access to a firm's financial statements
• C) security prices quickly reflect all economically relevant information
• D) accurate stock quotes are quickly available to all investors

---

Definitions:

Hydrodynamics

The branch of physics that deals with the motion of fluids, particularly water, and the forces acting on them.

Lower-priced Handbags

relates to handbags sold at a price point that is typically below the average market price, aiming at affordability without necessarily compromising on quality.

Annually

Relating to something that happens once a year.

Variable Costs

Costs that vary directly with the level of production or sales volume; they rise as production increases and fall as production decreases.