In an Efficient Market

question 5

Multiple Choice

In an efficient market:

• A) security prices are seldom far above or below their justified level.
• B) share prices react quickly to new information.
• C) investors will not make superior returns consistently.
• D) All of the given answers are correct.

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Definitions:

Operating

The process of controlling and managing the day-to-day activities necessary for running a business or organization.

Incentive Scheme

A structured plan designed to promote or encourage specific actions or behaviors by offering rewards or penalties.

Feasible Production

Productions that are achievable within the existing resources and technological constraints of a company or economy.

Bonus Payment

A bonus payment is an additional compensation given to employees as a reward for their performance or for meeting certain targets.