What Is the Most Important Determinant of Stock Price in an Efficient

question 5

Multiple Choice

What is the most important determinant of stock price in an efficient market?

• A) Information about past events and beliefs about future events
• B) The trading system that connects buyers and sellers within the market
• C) The number of traders participating in the market
• D) The ability of investors to perfectly adjust prices based on new information

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Definitions:

Polite

Showing consideration for others in manners, behavior, and speech.

Well-mannered

Descriptive of an individual exhibiting polite, courteous, and socially appropriate behavior.

Prudent

Acting with or showing care and thought for the future, often in personal or financial decisions.

Conscious

Being aware of one's surroundings and of one’s thoughts and sensations; awake.