The Theory of Efficient Markets Assumes That

question 43

Multiple Choice

The theory of efficient markets assumes that:

• A)Prices of bonds, but not stocks, reflect all available information.
• B)The prices of all financial instruments reflect all available information.
• C)Stock prices are relatively rigid because it takes a while for information to efficiently move through the market.
• D)The best approach to determining stock prices is to follow the chartists.

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Definitions:

Follow-up

The process of continuing engagement or communication to ensure outcomes, resolve issues, or maintain relationships.

Process Consultation

A form of organizational development consultation where a consultant assists a client in understanding and improving internal processes.

Group-focused Technique

A strategy or method aimed at improving the dynamics or output of a team, by focusing on group interactions and collective performance.

Organization Development

A planned, system-wide effort, using behavioral science knowledge, aimed at improving an organization's health and effectiveness.