Under Which of the Following Forms of Market Efficiency Would

question 55

Multiple Choice

Under which of the following forms of market efficiency would stock prices always reflect fair value?

• A) Weak-form efficiency.
• B) Semistrong-form efficiency.
• C) Strong-form efficiency.
• D) All of these are correct due to capital market efficiency.

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Definitions:

Tidal Volume

The volume of air moved into or out of the lungs during a normal breath at rest.

Residual Volume

The volume of air remaining in the lungs after a forceful exhalation.

Thoracic Pressure

The pressure within the thoracic cavity, affecting the lungs and heart, essential for respiration and cardiovascular functions.

Diaphragm

A dome-shaped, muscular partition separating the thorax from the abdomen in mammals, playing a major role in breathing as its contraction increases the volume of the thorax and so inflates the lungs.