In Finance, an Efficient Market Is One in Which

question 24

Multiple Choice

In finance, an efficient market is one in which:

• A) prices are assumed to be correct.
• B) prices adjust quickly and accurately to new information.
• C) prices are the best allocators of capital in the macro economy.
• D) all of the above

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Definitions:

Creative Freedom

The liberty to express oneself through creativity without constraints or limitations, often emphasizing autonomy in artistic or problem-solving endeavours.

Work Teams

Groups of individuals who collaborate towards a common goal and share responsibilities for achieving team objectives.

Mismanaged

Mismanaged refers to poor or inefficient management, where resources, tasks, or operations are not handled appropriately, leading to suboptimal outcomes.

Effectiveness

The degree to which something is successful in producing a desired or intended result, often measured against specific goals or standards.