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

---

Definitions:

Attractiveness

The qualities or features of an entity that make it appealing or desirable to others.

Predetermined Wage Grades

An established set of salary levels defined before recruitment, often based on job analysis, to classify positions according to value and responsibility.

Job Classification System

A method of evaluating and categorizing positions within an organization based on duties, responsibilities, and the level of expertise required, often used to determine salary ranges.

Pay Levels

The range of compensation provided to employees, typically categorized into bands or grades based on job roles, responsibilities, and market benchmarks.