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:

Unqualified Endorsements

Endorsements on negotiable instruments, such as checks, without any limitations, making the endorser fully liable.

Special

Distinguished by a unique or particular quality, purpose, or condition from what is ordinary or common.

Overdue

A status indicating that a payment or obligation was not fulfilled or completed by its due date.

Holder In Due Course

A party possessing a negotiable instrument, such as a check, who took the instrument in good faith, for value, and without notice of any defect or claim against it.