Efficient Capital Markets

question 10

Multiple Choice

Efficient capital markets

• A) are an academic myth.
• B) adjust prices slowly but surely to the arrival of new information.
• C) reflect all available information in security prices and adjust quickly and accurately to the arrival of new information.
• D) none of the above.

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Definitions:

Demand Curve

An illustrated chart showing the connection between a product's price and the level of demand from buyers.

Price of Quinoa

The cost at which quinoa, a high-protein, gluten-free grain, is sold in the market.

Equilibrium Price

The price at which the quantity of goods suppliers are willing to sell equals the quantity consumers are willing to buy, also known as the market-clearing price.

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of offering for sale at a specific price point.