Imagine You Are Holding a Rock Composed of Small Sand

question 11

Multiple Choice

Imagine you are holding a rock composed of small sand grains cemented together.What subclassification of sedimentary rock is this?

• A)clastic
• B)chemical
• C)igneous
• D)crystalline

---

Definitions:

Semistrong Efficiency

A form of market efficiency that asserts all public information is reflected in stock prices, alongside past trading information.

Market Anomalies

Price patterns or other market behaviors that deviate from the efficient market hypothesis and could potentially be exploited for profit.

Abnormal Returns

The earnings on a stock (or portfolio) that exceed what would be predicted by an equilibrium model like the CAPM.

Inside Trades

Trading activities based on material, non-public information about a company, which is illegal in many jurisdictions.