An Efficient Capital Market Is One in Which

question 29

Multiple Choice

An efficient capital market is one in which:

• A) all securities that investors desire are offered.
• B) all transactions are closed within 2 business days.
• C) current prices reflect all current information.
• D) the lowest interest rates are offered.

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Definitions:

Sign Test

A non-parametric test used to determine if there is a significant difference between paired observations, relying on the direction of differences rather than their size.

Matched Pairs

A statistical technique that involves comparing two samples that are closely related or paired, often used in before-and-after studies.

Null Hypothesis

A hypothesis in statistical tests that assumes no effect or no difference between groups or conditions being compared.

Consecutive Weeks

A succession of weeks that occur consecutively without any breaks.