Which Statement Regarding Market Efficiency Is True

question 91

Multiple Choice

Which statement regarding market efficiency is true?

• A)Semistrong-form market efficiency implies that as soon as any public or private information comes into being it is incorporated into stock prices.
• B)Weak-form market efficiency implies that recent trends in stock prices are of no use in predicting future stock prices.
• C)Market efficiency implies that all stocks should have the same expected return.
• D)According to strong-form market efficiency, insiders would find it possible to consistently earn abnormal returns in the stock market even if they have superior knowledge about the company.

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Definitions:

Responsive Transportation

Transportation services that are flexible and capable of adapting efficiently to changing demand or supply conditions, contributing to supply chain responsiveness.

Online Retailer

A business that sells goods or services over the internet.

Mode of Transportation

The method by which goods and people move from one place to another, including road, rail, air, and sea.

Supply Lead Time

The total time taken for a supplier to deliver goods after an order has been placed, encompassing production, transportation, and handling processes.