Which of the Following Is Inconsistent with Efficient Securities Markets?​

question 34

Multiple Choice

Which of the following is inconsistent with efficient securities markets?​

• A) ​stock prices change rapidly in response to new information
• B) ​investors cannot expect to outperform the market consistently
• C) ​bond prices change rapidly in response to new information
• D) ​analysis of financial data will lead to superior investment performance

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Definitions:

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.

Elastic Supply

A situation where the supply of a good changes significantly when its price changes.

Tax Burden

The measure of the impact of taxation on an individual's or entity's income, assets, or purchasing power.

Elastic

Describes a situation in economics where the supply or demand for a good or service is sensitive to changes in price. In other words, a small change in price results in a larger change in quantity demanded or supplied.