Fama (1970)outlines the Sufficient Conditions in Order for All Shareholders

question 29

Multiple Choice

Fama (1970) outlines the sufficient conditions in order for all shareholders to agree about the exact nature of uncertainty.Which of the following statements is not one of the specified sufficient conditions?

• A)There are no transaction costs in trading securities.
• B)All agree on the implication of current information for the future price and distributions of future prices of each security.
• C)All information is costlessly available to all market participants.
• D)None of the given options.

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Definitions:

Mesoderm

The middle layer of an embryo in multicellular organisms, giving rise to muscles, bones, and the circulatory system among other structures.

Water-Vascular System

A network of hydraulic canals unique to echinoderms, such as starfish, used for locomotion, feeding, and respiration.

Exoskeleton

External skeleton of some invertebrates; hard external parts that muscles attach to and move.

Shed

To cast off or discard something, such as skin or hair, through a natural process or to describe a simple, single-story structure used for storage.