If a Company Insider Uses All of Her Knowledge About

question 322

Multiple Choice

If a company insider uses all of her knowledge about the company stock and still has no advantage in the marketplace over outside investors, the market has to be:

• A) Semi-strong form efficient.
• B) Strong form efficient.
• C) Weak form efficient.
• D) Overpriced.
• E) Underpriced.

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Definitions:

Secularization

is the process by which religious institutions, practices, and beliefs lose their social significance.

Institutional Authority

The power or right granted to institutions or organizations to direct actions or set policies within a societal framework.

Afterlife

Beliefs regarding a continuation of existence, typically in a spiritual or metaphysical realm, following the death of the physical body.

Door To Door

A method of selling products or services directly to customers at their homes or workplaces.