Individuals That Continually Monitor the Financial Markets Seeking Mispriced Securities

question 44

Multiple Choice

Individuals that continually monitor the financial markets seeking mispriced securities

• A)tend to make substantial profits on a daily basis.
• B)tend to make the markets more efficient.
• C)are never able to find a security that is temporarily mispriced.
• D)are always quite successful using only well-known public information as their basis of evaluation.
• E)are always quite successful using only historical price information as their basis of evaluation.

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Definitions:

Desirability

The quality of being appealing, attractive, or sought-after, often in the context of products, traits, or attributes.

Availability

The extent to which a product, service, or resource is accessible and usable upon demand.

Tertiary Sector

represents the part of the economy concerned with services, as opposed to the extraction of raw materials or manufacturing.

Economy

The organized system of human activity involved in the production, consumption, and distribution of goods and services within a certain area or country.