Financial Investments Are Made in Efficient Markets

question 10

Multiple Choice

Financial investments are made in efficient markets. The existence of these markets suggests that

• A)investors cannot earn superior returns
• B)investors cannot expect to outperform the market consistently
• C)securies prices are random
• D)bearing additional risk will not increase return

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Definitions:

Consensus Crimes

Criminal acts that are universally condemned by society and considered inherently wrong, such as murder and rape.

Legal Conflict

A disagreement or dispute between parties that requires the intervention of a court of law to resolve.

Culture

Is the sum of socially transmitted practices, languages, symbols, beliefs, values, ideologies, and material objects that people create to deal with real-life problems. Cultures enable people to adapt to, and thrive in, their environments.

John Hagan

A respected sociologist known for his contributions to criminology and social structure theories.