If Capital Markets Are Semi-Strong Form Efficient, Then

question 283

Multiple Choice

If capital markets are semi-strong form efficient, then:

• A) Traders can earn exceptional profits using publicly available information.
• B) Stock analysts have a trading advantage because of their access to vast amounts of public information.
• C) Company insiders can profit based on the inside information.
• D) Individuals can identify mispriced stocks using publicly available information.
• E) Studying past prices will help predict the future performance of a security.

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Definitions:

Internet Company

A business that primarily operates online, providing products or services through the web.

Merchant Wholesalers

Businesses that buy goods in bulk from manufacturers and sell them, usually in smaller quantities, to retailers or other businesses, but not directly to consumers.

Agents and Brokers

Intermediaries who facilitate the buying and selling process in various markets, often dealing in real estate, insurance, or securities.

Title to Merchandise

The legal right of ownership of goods, indicating that the holder has the right to control the use and disposition of the items.