Which of the Following Statements About Market Efficiency Is Generally

question 131

Multiple Choice

Which of the following statements about market efficiency is generally considered to be true?

• A) For inefficient markets, security prices will rapidly reflect new information.
• B) It is easy to forecast the direction of future security price changes in the short run.
• C) Short-run price changes occur independent of information coming to the market.
• D) On average, most stocks are mispriced.
• E) In the absence of legal constraints, investors with inside information will be able to earn excess returns.

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Definitions:

Deal with Criticism

Strategies or methods to handle or respond to negative feedback or evaluation in a constructive manner.

Apology

An expression of regret or sorrow for having done something wrong, often aiming to restore a damaged relationship.

Working Style

Describes the manner in which an individual approaches tasks and interacts with colleagues in a professional setting.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.