Market Efficiency Implies That Security Prices Impound New Information Quickly

question 6

True/False

Market efficiency implies that security prices impound new information quickly.

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Definitions:

Current Assets

Resources anticipated to be exchanged for cash, disposed of, or utilized within a twelve-month period or over the usual duration of the company's operational cycle, if that period extends beyond a year.

Current Liabilities

Short-term financial obligations due within one year, including debts and accounts payable.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts using its available assets.

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets, measuring efficiency in using assets to generate earnings.