Which One of the Following Statements Is Correct Concerning Market

question 79

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A) Real asset markets are more efficient than financial markets.
• B) If a market is efficient, arbitrage opportunities should be common.
• C) In an efficient market, some market participants will have an advantage over others.
• D) A firm will generally receive a fair price when it issues new shares of stock if the market is efficient.
• E) New information will gradually be reflected in a stock's price to avoid any sudden price changes in an efficient market.

---

Definitions:

Thrombosis

The formation of a blood clot in a blood vessel (plural = thrombi).

Birth Control Pills

Medications used to prevent pregnancy by inhibiting ovulation, thickening cervical mucus, or altering uterine lining.

Gynecological Examination

A medical procedure where a healthcare provider examines the female reproductive organs for health assessment.

Pseudomonas

A genus of bacteria known for their ability to colonize a wide range of environments, including soil and water; some species can cause infections in humans.