Which One of the Following Statements Is Correct Concerning Market

question 58

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A) Real asset markets are more efficient than financial markets.
• B) If a market is efficient, arbitrage opportunities should be common.
• C) In an efficient market, some market participants will have an advantage over others.
• D) A firm will generally receive a fair price when it sells shares of stock.
• E) New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock.

---

Definitions:

Freud

Sigmund Freud was an Austrian neurologist best known for developing the theories and techniques of psychoanalysis.

Psychoanalysis

A therapeutic approach and theory of mind developed by Sigmund Freud that emphasizes unconscious processes and childhood experiences in shaping behavior and personality.

Psychological Problems

Mental or emotional issues that can affect a person's thoughts, behaviors, and overall well-being, often requiring professional intervention.

Freud

An Austrian neurologist named Sigmund Freud, who established psychoanalysis, a technique to address mental disorders through conversations between a psychoanalyst and their patient.