Which One of the Following Statements Is Correct Concerning Market

question 35

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 sells shares of stock.

---

Definitions:

Numerical Descriptive Measures

Statistics that quantitatively describe or summarize features of a collection of information, such as mean, median, mode, and range.

Population Measurements

The process of obtaining and analyzing specific characteristics or parameters of a defined group of individuals to generalize findings.

Mound-Shaped

A description of a graph of a dataset that has a symmetrical bell-shaped appearance, reflecting a normal distribution.

Standard Deviation

An indicator of the degree of variability or spread within a dataset, reflecting the extent to which the data points diverge from the average value.