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:

Withdrawing

The act of pulling back or removing oneself from a particular situation, interaction, or engagement.

Primary Reinforcer

A stimulus that satisfies a basic need or inherently reinforces a behavior, such as food or water.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, composed of hydrogen and oxygen (H2O), that is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Grades

Marks or scores assigned to students' work to indicate the quality of their performance, typically on a scale from A to F.