The Efficient Markets Hypothesis Suggests That If an Unexploited Profit

question 5

Multiple Choice

The efficient markets hypothesis suggests that if an unexploited profit opportunity arises in an efficient market,

• A) it will tend to go unnoticed for some time.
• B) it will be quickly eliminated.
• C) financial analysts are your best source of this information.
• D) prices will reflect the unexploited profit opportunity.

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Definitions:

Self

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Emerges

To come into view or existence; to become apparent or known.

Middle Age

A period of human adulthood that typically spans from around age 40 to 65, characterized by increased self-awareness, stability, and facing aging.

Introverted

An attribute in personality focused on the inner sensations as opposed to outer influences.