Which of the Following Is the Best Definition for the Concept

question 292

Multiple Choice

Which of the following is the best definition for the concept of efficient capital market?

• A) The excess return required from an investment in a risky asset over a risk-free investment.
• B) Market in which security prices reflect available information.
• C) A symmetric, bell-shaped frequency distribution that can be defined by its mean and standard deviation.
• D) The average compound return earned per year over a multi-year period.
• E) The hypothesis is that actual capital markets are efficient.

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Definitions:

Isotopes

Variations of a chemical element that have the same number of protons but different numbers of neutrons in their nuclei.

Ancient Rock

Rock formations dating back millions of years, often providing information on the Earth's geological and evolutionary history.

Prehistoric Cultural Sites

Locations that provide archaeological evidence of human activity and habitation before recorded history or the advent of written language.

Recent Lava Flows

Molten rock that has erupted from a volcano and solidified on the earth's surface in the recent geological past.