Which of the Following Statement(s) Is/are True If the Efficient

question 53

Multiple Choice

Which of the following statement(s) is/are true if the efficient market hypothesis holds? I) It implies perfect forecasting ability
II) It implies market is irrational
III) It implies that prices follow a particular pattern
IV) It implies that prices reflect all available information

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

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Definitions:

Responsibility Report

Financial reports that track the performance of segments, departments, or managers within an organization against their budgeted or forecasted figures.

Controllable Fixed Costs

Expenses that remain constant for a given period but can be influenced or managed by decisions of a company's management.

Management Performance Report

Management performance reports are documents or systems that provide key performance indicators and other relevant data to assess, monitor, and enhance the effectiveness and efficiency of management and organizational operations.

Controllable Fixed Costs

Fixed costs that a manager or business has the power to influence or change in the short term.