If a Market Is Efficient, Then

question 30

Multiple Choice

If a market is efficient, then

• A)it may be perfect or imperfect.
• B)all investments will offer the same return.
• C)there is no reason to invest in it since you can't expect to earn any excess returns.
• D)it must also be perfect.

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Definitions:

Liability

A financial obligation or debt that a company owes, which will need to be paid to creditors, suppliers, or other parties.

Consolidated Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries as one entity.

Net Assets

The total assets of a company or organization minus its total liabilities, reflecting the entity's own equity value.