Which One of the Following Statements Is Correct Concerning Market

question 16

Multiple Choice

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

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

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Definitions:

Convenience Goods

Products that are easily accessible to consumers and purchased frequently with minimal effort.

Selective Distribution

A distribution strategy where a product is available in selected outlets within a geographical area, allowing manufacturers to choose more strategically where their goods are sold.

Intermediaries

Entities or individuals that act as a middle-man in transactions or processes, facilitating interaction between two parties.

Logistics

The management of the flow of goods, services, and information between the point of origin and the point of consumption to meet customer requirements.