In an Efficient Securities Market, the Investor Cannot Earn, Over

question 2

True/False

In an efficient securities market, the investor cannot earn, over a period of years, a return comparable to the amount of risk the individual bears.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a market.

Put Option Contracts

Financial contracts giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Exercise Price

Also known as the strike price, it’s the specified price at which an option contract can be exercised, determining the price at which the underlying security can be bought or sold.