Which of the Following Is NOT a Criterion for an Efficient

question 10

Multiple Choice

Which of the following is NOT a criterion for an efficient market?

• A) Prices adjust rapidly to new information.
• B) Large dollar amounts of securities can be absorbed without price destabilization.
• C) Each successive trade is made at a price close to the previous trade.
• D) Computerized handling of transactions is necessary.

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Definitions:

Cohen's D Test

A measure of effect size that evaluates the difference between two means relative to the standard deviation of the sample.

Directional

Pertains to tests or hypotheses that specify the expected direction of the relationship or difference between variables.

Nondirectional

Pertaining to hypotheses or research questions that do not specify the direction of the expected relationship between variables.

F-test

A type of statistical test that compares the variances of two or more groups to find if they come from populations with equal variances.