Under Which of the Following Forms of Market Efficiency Would

question 103

Multiple Choice

Under which of the following forms of market efficiency would stock prices always reflect fair value?

• A) Weak-form efficiency
• B) Semi-strong-form efficiency
• C) Strong-form efficiency
• D) Semi-weak-form efficiency

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Definitions:

Altitude

The height of an object or point in relation to sea level or ground level.

Moderately Strong Association

A term indicating a significant but not perfect relationship between two variables in statistical analysis.

Linear Association

A relationship between two variables where the change in one variable is proportional to the change in the other, typically represented by a straight line in a scatter plot.

Positive Association

A connection between two variables where both rise or fall simultaneously.