Which of the Following Statements Related to Market Efficiency Tend

question 29

Multiple Choice

Which of the following statements related to market efficiency tend to be supported by current evidence?
I.Markets tend to respond quickly to new information.
II.It is difficult for investors to earn abnormal returns.
III.Short-run prices are difficult to predict accurately based on public information.
IV.Markets are most likely weak form efficient.

• A)I and III only
• B)II and IV only
• C)I and IV only
• D)I, III, and IV only
• E)I, II, and III only

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Definitions:

Electrostatic Discharge

The sudden flow of electricity between two electrically charged objects caused by contact, an electrical short, or dielectric breakdown.

DC Motors

Electric motors that run on direct current electricity, commonly used in various applications from small toys to large vehicles.

Relays

Electrically operated switches used to control circuits.

Fretting

Wear at the contact surfaces of two materials that occurs from repeated cyclical motion or vibration, often seen in electrical connections.