Which of the Following Is FALSE? Market Efficiency Implies

question 12

Multiple Choice

Which of the following is FALSE? Market efficiency implies:

• A)new information disseminates quickly.
• B)investors can take advantage of temporary time lags in information dissemination.
• C)new information is instantly reflected in share prices.
• D)the prices of securities are considered "right" at any time given their risk profile.

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Definitions:

Extreme Turmoil

A state of great disturbance, confusion, or uncertainty, typically involving strong emotions or reactions.

Senile

A term historically used to describe the deterioration of cognitive abilities associated with aging, often related to conditions like dementia.

Delusional

A false belief held with strong conviction despite superior evidence to the contrary, often a symptom of psychiatric disorders.

Mental Abilities

The intellectual capacities and cognitive functions that enable problem solving, reasoning, and learning.