What Does the Concept of an Efficient Market Imply

question 23

Multiple Choice

What does the concept of an efficient market imply?

• A)All shares of stock have the same market beta.
• B)Selecting stocks by throwing darts at a page of stocks will yield the same return as a carefully selected portfolio.
• C)Prices reflect all available information.
• D)Stock prices do not fluctuate.

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Definitions:

Saltatory Transmission

The rapid propagation of nerve impulses along myelinated axons from one Node of Ranvier to the next, increasing the speed of electrical signal transmission.

Central Nervous System

The part of the nervous system comprising the brain and spinal cord, responsible for processing and sending out information to the rest of the body.

Limbic System

A complex system of nerves and networks in the brain, involved in various emotional states and biological drives.

Cerebellum

A part of the brain located at the back of the skull in vertebrates, responsible for coordinating muscle movements and maintaining posture and balance.