Which One of the Following Best Describes the Current Understanding

question 84

Multiple Choice

Which one of the following best describes the current understanding of market efficiency?

• A) short-term stock price movements are easy to predict
• B) markets overreact to unanticipated events in a manner which can be used to earn excess returns
• C) the market appears to be highly inefficient
• D) short-term market movements are difficult, if not impossible, to predict accurately
• E) markets tend to react slowly to unanticipated announcements

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Definitions:

Federal Trade Commission

A United States government agency responsible for preventing unfair or deceptive business practices and protecting consumer rights.

Standard of Care

A diagnostic and treatment process that a clinician should follow for a certain type of patient, illness, or clinical circumstance.

Bailee's Liability

Refers to the legal responsibility of a bailee, who temporarily holds custody of another's property, to take care of that property.

Gratuitous Bailment

A gratuitous bailment occurs when one party, the bailor, temporarily transfers possession of property to another, the bailee, without expectation of payment or benefit.