Which One of the Following Is Most Indicative of a Totally

question 42

Multiple Choice

Which one of the following is most indicative of a totally efficient stock market?

• A) Extraordinary returns earned on a routine basis
• B) Positive net present values on stock investments over the long-term
• C) Zero net present values for all stock investments
• D) Arbitrage opportunities which develop on a routine basis
• E) Realizing negative returns on a routine basis

---

Definitions:

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock.