Which of the Following Would Be Inconsistent with an Efficient

question 123

Multiple Choice

Which of the following would be inconsistent with an efficient market?

• A) Information arrives randomly and independently.
• B) Stock prices adjust rapidly to new information.
• C) Price changes are independent.
• D) Price changes are random.
• E) Price adjustments are biased.

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Definitions:

Core

Wealthy countries with developed economies.

Periphery

Poor countries that are exploited for their raw materials by core countries.

World System Theorists

Scholars who analyze the socio-economic differences and inequalities among countries based on the global division of labor and the distribution of resources.

Modernization Theory

A theory that suggests developing countries will progress economically and socially by adopting Western-style capitalism and cultural values.