Semistrong Form Market Efficiency States That the Value of a Security

question 42

Multiple Choice

Semistrong form market efficiency states that the value of a security is based on:

• A)all public and private information.
• B)historical information only.
• C)all publicly available information.
• D)all publicly available information plus any data that can be gathered from insider trading.
• E)random information with no clear distinction as to the source of that information.

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Definitions:

Expectancy Theory

A theory of motivation that posits that individuals are motivated to act in a certain way based on their expectations that the act will be followed by a given outcome and the attractiveness of that outcome.

Goal-Setting Theory

A theory suggesting that setting specific, challenging goals, with appropriate feedback, leads to higher performance.

ERG Theory

A theory of human motivation that categorizes needs into three groups: Existence, Relatedness, and Growth.

Two-Factor Theory

A theory by Frederick Herzberg that identifies motivation and hygiene factors as key to employee satisfaction and performance.