The Market Price of a Stock Moves or Fluctuates Daily

question 39

Multiple Choice

The market price of a stock moves or fluctuates daily. This fluctuation is:

• A) inconsistent with the semi-strong efficient market hypothesis because prices should be stable.
• B) inconsistent with the weak form efficient market hypothesis because all past information should be priced in.
• C) consistent with the semi-strong form of the efficient market hypothesis because as new information arrives daily prices will adjust to it.
• D) consistent with the strong form because prices are controlled by insiders.

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Definitions:

Spectral Data

Information obtained from analyzing the interaction of electromagnetic radiation with matter, used to determine composition, structure, and physical properties.

Quartet

In NMR spectroscopy, a signal that is split into four peaks, indicating an atom's hydrogen atoms are coupled to three equivalent neighboring hydrogens.

Doublet

A pattern in NMR spectroscopy indicating two adjacent protons that are not equivalent, leading to two closely spaced signals.

IR

Infrared spectroscopy, a technique used for identifying organic compounds through their unique absorption of infrared light.