In an Efficient Market

question 55

Multiple Choice

In an efficient market,

• A) security prices react quickly to new information.
• B) security prices are seldom far above or below their justified levels.
• C) security analysis will not enable investors to realize superior returns consistently.
• D) one cannot make money.
• E) security prices react quickly to new information, security prices are seldom far above or below their justified levels, and security analysis will not enable investors to realize superior returns consistently.

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Definitions:

Implementation

The process of putting a decision or plan into effect; it is the action taken to ensure that a strategy or directive is executed.

Responsibilities

Duties or obligations required to be fulfilled by an individual or group.

Implementing Agreement

The process of putting into action the terms and conditions of a previously negotiated contract or accord.

Responsibilities

Duties or tasks that an individual or group is obliged to perform or fulfill, often as part of a job or role.