Efficient Markets Tend to Exist

question 67

Multiple Choice

Efficient markets tend to exist:

• A)only when all investors are rational.
• B)anytime market volume exceeds the average trading volume.
• C)only when market volatility is low.
• D)when rational arbitrage traders dominate irrational traders.
• E)when arbitrage trading is prohibited.

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Definitions:

Administrative Agencies

Governmental bodies responsible for implementing, administering, and enforcing laws and regulations in specific areas of public policy.

Enabling Statute

A law that gives a government entity or agency the authority to take certain actions or enforce specific regulations.

Legislative Rules

Regulations established by a government's legislative body to interpret and implement statutory laws.

Prosecutor

A legal officer who represents the government in criminal proceedings, charging and attempting to prove the guilt of the defendant.