Stock Prices Fluctuate Daily

question 10

Multiple Choice

Stock prices fluctuate daily.In relation to the efficient market hypothesis,these fluctuations are

• A)inconsistent with the semistrong form of efficiency because prices should be stable.
• B)inconsistent with all forms of market efficiency.
• C)consistent with the semistrong form because new information arrives daily.
• D)consistent with the strong form because prices and information are controlled by insiders.
• E)consistent with all forms of market efficiency provided the prices do fluctuate on a daily basis.

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Definitions:

Standard

In the context of business and accounting, standard refers to the established norms or criteria against which performance or practices are measured.

Producing

The act of creating, manufacturing, or generating products or services.

Capacity Level

The maximum output a business can produce in a given period with existing resources, often impacting production costs and pricing strategies.

Actual Production

The total quantity of goods and services produced over a specific period by a business.