The Main Difference Between the Three Forms of Market Efficiency

question 42

Multiple Choice

The main difference between the three forms of market efficiency is that

• A) the definition of efficiency differs.
• B) the definition of excess return differs.
• C) the definition of prices differs.
• D) the definition of information differs.
• E) they were discovered by different people.

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Definitions:

Co-operation

Working together towards common goals or mutual benefits, often involving sharing resources or coordinating efforts.

Competition

A biological interaction where individuals or species vie for the same resources, such as food or space, in an ecosystem.

Predation

The biological interaction where one organism, the predator, hunts and consumes another organism, the prey, as a means of obtaining energy and nutrients.

Commensalism

Commensalism is a type of symbiotic relationship between two living organisms where one benefits without harming or benefiting the other.