Insider Trading Does Not Offer Any Advantages If the fiNancial

question 13

Multiple Choice

Insider trading does not offer any advantages if the financial markets are:

• A) Weak form efficient.
• B) Semi-weak-form efficient.
• C) Semi-strong-form efficient.
• D) Strong-form efficient.
• E) Inefficient.

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Definitions:

Domestic Investment

The total spending on capital within a country, including spending on new buildings, machinery, and inventory changes.

Real GDP

A measure of the value of all goods and services produced by an economy adjusted for price changes or inflation.

Foreign Investment

The investment of capital by individuals, corporations, or governments from one country into business interests within another country.

Standard Of Living

The standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.