If the Financial Markets Were Regulated Such That the Markets

question 1

Multiple Choice

If the financial markets were regulated such that the markets maintained strong form efficiency, then:

• A)insider trading laws would be unnecessary.
• B)all investors would earn equivalent rates of return.
• C)risk premiums would vanish.
• D)all investors would become arbitrage traders.
• E)securities would tend to be continually underpriced.

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Definitions:

ILO

The International Labour Organization (ILO) is a United Nations agency that sets international labor standards and promotes rights at work, encouraging decent employment opportunities and enhancing social protection.

National Labor Relations Board

A federal agency in the United States tasked with enforcing US labor law in relation to collective bargaining and unfair labor practices.

Labor Standards

Regulations and practices that relate to working conditions, including aspects like minimum wages, working hours, safety, and rights to organize.

Labor Cooperation

The collaboration between workers, employers, and sometimes governments, to improve working conditions, productivity, and workers' rights.