The Efficient Markets Hypothesis States

question 79

Multiple Choice

The Efficient Markets Hypothesis states

• A)markets tend to evolve to low transactions costs and speedy execution of orders.
• B)current asset prices (e.g.,exchange rates)fully reflect all the available and relevant information.
• C)current exchange rates cannot be explained by such fundamental forces as money supplies,inflation rates and so forth.
• D)none of the options

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Definitions:

Centralization

The concentration of authority for most decisions at the top level of an organization.

Decentralization

Decentralization refers to the distribution of decision-making authority from a central figure or location to lower levels within an organization or government, allowing for more localized and responsive decision-making.

Decision Making

The process of identifying and choosing alternatives based on the values, preferences, and beliefs of the decision-maker.

Informal Structures

Unofficial relationships and networks within an organization that influence decision-making, communication, and relationships.