Which One of the Following Statements Is Correct Concerning Market

question 50

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A) Real asset markets are more efficient than financial markets.
• B) If a market is efficient, arbitrage opportunities should be common.
• C) In an efficient market, some market participants will have an advantage over others.
• D) A firm will generally receive a fair price when it sells shares of stock.
• E) New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock.

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Definitions:

Wrinkling

The formation of ridges, folds, or creases in the skin, often as a result of aging or prolonged exposure to water.

Free Radicals

Unstable molecules that can cause damage to cells, leading to aging and diseases, including cancer.

Beta Carotene

A red-orange pigment found in plants and fruits, especially carrots and colorful vegetables, which is a precursor of vitamin A.

Fiber

Fiber is a type of carbohydrate found in plant foods that the body cannot digest, which is important for maintaining digestive health and preventing constipation.