The Notion That Stock Prices Reflect All Current Available Information

question 56

Multiple Choice

The notion that stock prices reflect all current available information:

• A)Makes the risk of holding stocks greater.
• B)Indicates that mutual fund managers will not, on average, outperform market averages.
• C)Says stock prices should be more rigid than they are.
• D)Makes it easier to predict the movements in the price of a stock.

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Definitions:

Marginal Utility

Marginal Utility is the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Video Game Rental

A service that allows consumers to borrow video games for a limited period of time in exchange for a fee.

Marginal Utility

The additional satisfaction a consumer gains from consuming one more unit of a good or service.

Movie Rental

A service that allows consumers to temporarily access films for a fee without purchasing them outright.