Which One of the Following Statements Is Correct Concerning Market

question 35

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A)Real asset markets are more efficient than financial markets.
• B)If a market is efficient, arbitrage opportunities should be common.
• C)In an efficient market, some market participants will have an advantage over others.
• D)A firm will generally receive a fair price when it issues new shares of stock.
• E)New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock.

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Definitions:

Disulfide Linkage

A covalent bond between two sulfur atoms, typically found in the tertiary structure of proteins.

Dithiothreitol

A chemical compound used as a reducing agent to break disulfide bonds in proteins, facilitating their denaturation.

Peptide

A short chain of amino acids linked by peptide bonds, which is the building block of proteins.

Phenyl Isothiocyanate

A chemical reagent used in the Edman degradation method for sequencing amino acids in peptides.