If Security Prices Fully Reflect All Market-Related Information (Such as Historical

question 30

Multiple Choice

If security prices fully reflect all market-related information (such as historical price patterns) but do not fully reflect all other public information, security markets are

• A) weak-form efficient
• B) semistrong-form efficient.
• C) strong-form efficient.
• D) B and C
• E) none of the above

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Definitions:

Control Account

A general ledger account that summarizes and controls the total amounts recorded in subsidiary ledgers.

Cash Sales

Transactions where payment is made in cash at the time of purchase.

Monthly

Pertaining to or calculated for a period of one month.

Subsidiary Ledger

A secondary ledger containing detailed information to support accounts listed in the general ledger, such as accounts receivable or payable details.