Which of the Following Conditions Do Not Characterize Perfect Capital

question 8

Multiple Choice

Which of the following conditions do not characterize perfect capital markets?

• A) Trading is costless; access to the financial markets is free.
• B) Information about borrowing and lending opportunities is readily available.
• C) There are many traders; no single trader can have a significant impact on market prices.
• D) A few influential firms can control the financial market.

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Definitions:

Data Values

The individual pieces of information collected in a study or used in calculations, which can be numerical or categorical.

Histogram

A graphical representation of the distribution of numerical data, with bars showing the frequency of data in successive intervals.

Observation

An observation is a record or a piece of data collected during an experiment or survey, representing one instance or example of a variable of interest.

Histogram

A graphical representation of the distribution of numerical data, where the data is grouped into bins and the frequency of data points within each bin is depicted by the height of the bar.