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:

Haversian Canal

The central channel, containing blood vessels and nerves, found in the osteon or structural unit of compact bone.

Canaliculi

Small, channel-like structures within bone tissue that allow for communication and nutrient transfer between blood vessels and osteocytes.

Long Bone

A type of bone that is longer than it is wide and is characterized by a shaft and two ends, playing a crucial role in supporting weight and facilitating movement.

Short Bone

A type of bone that is as wide as it is long, providing support and stability with little movement, such as the bones in the wrist and ankle.