An Efficient Market Is Defined as One in Which

question 48

Multiple Choice

An efficient market is defined as one in which

• A)the current prices reflect all available information.
• B)there are no taxes.
• C)there are no transaction costs.
• D)All of the above are necessary conditions for an efficient market.

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Definitions:

Internal Attributions

Attributing behavior to personal traits rather than external factors.

Unusual Situation

A scenario or circumstance that deviates significantly from what is considered normal or expected.

Videotape

A magnetic tape used for recording visual images and sound for television broadcasting or personal use.

Peripheral Route

A method of persuasion that relies on superficial cues or aspects, such as the attractiveness of the speaker, instead of the quality of the arguments.