The Efficient Market Hypothesis​

question 24

Multiple Choice

The efficient market hypothesis​

• A) ​suggests that the market for securities is becoming less efficient
• B) ​implies that investor can consistently outperform the market
• C) ​is built upon competition and the rapid dissemination of information
• D) ​suggests that security prices change slowly over time

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Definitions:

Isocost Line

A graph that shows all possible combinations of inputs that can be purchased with a given total cost.

Price of Capital

The cost of using capital resources, such as equipment or buildings, often reflected in interest rates or rental prices.

Price of Labor

The wage rate or compensation given to workers for their labor, typically expressed per hour or year.

Isocost Line

A graphical representation in economics showing all combinations of inputs that have the same total cost.