The Inefficient Market View Holds That Prices of Financial Instruments

question 95

Multiple Choice

The inefficient market view holds that prices of financial instruments ________.

• A) are dependent on political efficiency
• B) are not dependent on political efficiency
• C) do not reflect all publicly available information
• D) reflect all publicly available information at any given time

---

Definitions:

Revoke

To officially cancel or withdraw an offer, license, right, or permission that has been granted.

Letter of Credit

A financial document issued by a bank guaranteeing a buyer's payment to a seller within a specified timeframe and under agreed conditions.

Formal Contract

A contract that by law requires a specific form, such as being executed under seal, to be valid.

Unilateral Contracts

Contracts in which one party makes a promise in exchange for the other's performance, which fulfills the contract.