You Are the Chief Financial Officer of Donnelly Industries

question 28

Multiple Choice

You are the chief financial officer of Donnelly Industries.On multiple occasions,you have engaged in insider trading but have never been able to earn any abnormal returns.Which form of market efficiency most likely exists given your situation?

• A)mild-form
• B)weak-form
• C)historical-form
• D)semi-strong form
• E)strong-form

---

Definitions:

Expense

Costs incurred in the process of generating revenue, reflected in the income statement.

Asset

An economic resource owned or controlled by an individual or corporation, expected to provide future benefits.

Liability

Economic responsibilities or liabilities an organization has to other parties, which require repayment over a period via the exchange of economic assets.

Equity

The value of an owner's interest in a property or business, calculated by subtracting liabilities from assets.