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

---

Definitions:

Public Safety

The protection of citizens from significant danger, injury, damage, or harm, provided by governmental organizations and agencies.

Efficient Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to an optimal allocation of resources.

Nonrival

A characteristic of a good or service that implies one person's consumption does not reduce its availability to others.

Public Good

A good that is non-excludable and non-rival in consumption, meaning no one can be prevented from using it and one person's use does not reduce availability to others.