Which One of the Following Statements Is Correct Concerning Market

question 35

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A)Real asset markets are more efficient than financial markets.
• B)If a market is efficient, arbitrage opportunities should be common.
• C)In an efficient market, some market participants will have an advantage over others.
• D)A firm will generally receive a fair price when it issues new shares of stock.
• E)New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock.

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Definitions:

Mexico

A country located in the southern portion of North America, known for its rich cultural heritage, history, and diverse ecosystems.

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and distinctive historical heritage.

Collectivistic

Pertaining to cultures or societies that emphasize the group and its interests over the individual, focusing on community, cooperation, and interdependence.

India

A country in South Asia, known for its diverse culture, languages, and history; the seventh-largest country by land area and the second-most populous.