If It Proves Possible to Make Abnormal Profits Based on Information

question 127

Multiple Choice

If it proves possible to make abnormal profits based on information regarding past stock prices,then the market:

• A) is weak-form efficient.
• B) is not weak-form efficient.
• C) is semistrong-form efficient.
• D) is strong-form efficient.

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Definitions:

Commercially Reasonable

A standard in law and business that measures actions against what a reasonable person engaged in commerce would believe is acceptable or customary practice.

Repossessed Vehicle

A vehicle taken back by a lender or seller from the buyer due to failure to make agreed payments.

Deficiency

The difference between the amount owed on a loan and the proceeds from the sale of the asset securing the loan, if the sale amount does not cover the loan balance.

Breach Of The Peace

An act that disturbs public tranquility or order.