Which Statement Is Most Consistent with the Efficient Markets Hypothesis

question 142

Multiple Choice

Which statement is most consistent with the efficient markets hypothesis?

• A)Information in the market is always assessed correctly.
• B)Information is reflected in security prices almost immediately.
• C)Chartists have an advantage because the market is predictable.
• D)Investors cannot consistently earn a positive return on investment over time.

Identify the effects of temporal influences on consumer choices.

Recognize the role of consumer psychology in marketing strategies.

Understand the determination of bond prices and their relation to yield to maturity.

Analyze the effect of coupons and maturity on bond pricing and yield.

---

Definitions:

Marginal Cost

Marginal Cost refers to the increase in total production cost that arises from producing one additional unit of a good or service.

Economic Profits

The surplus achieved when the revenue from business activities exceeds both the explicit and implicit costs, differing from accounting profits by considering opportunity costs.

Accounting Profits

The total revenue of a company minus total explicit costs; the profit figure reported in financial statements.

Marginal Revenue

The additional income received from the sale of one more unit of a product or service.