If Financial Markets Are Highly Efficient

question 32

Multiple Choice

If financial markets are highly efficient:

• A) technical analysis will produce superior results.
• B) fundamental analysis will provide better results.
• C) market efficiency will be increased by analysts trying to analyze securities.
• D) stock prices will always rise instantaneously with the release of new information.
• E) none of the above.

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Definitions:

General Partnership

A type of business partnership where two or more partners share unlimited liability for the debts and obligations of the business.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another, typically within a trustee-beneficiary, advisor-client, or director-shareholder relationship.

UPA

The Uniform Partnership Act, a law in the United States that provides a basic framework for the operation of partnerships.

Full Capacity

The maximum level of output that a company can sustain to make a product or provide a service under normal circumstances.