Which One of the Following Best Describes the Current Understanding

question 49

Multiple Choice

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

• A) The market tends to overreact to new information in a manner which can be used to earn abnormal returns.
• B) Markets under-react 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:

Vas Deferens

A tube that connects the epididymis with the urethra and that carries sperm.

Sexual Arousal

A physiological and psychological state of being awakened to sexual desire and readiness for sexual activity.

Prostate

a gland in the male reproductive system that produces seminal fluid.

Oxytocin

A hormone that acts on the brain, influencing social interactions and behavior, and plays a crucial role in childbirth and lactation.