All of the Following Conditions Must Occur for a Market

question 55

Multiple Choice

All of the following conditions must occur for a market to be considered efficient except:

• A)Information is costless and widely available to market participants at approximately the same time.
• B)Information is generated in a specific fashion such that announcements are basically dependent on each other.
• C)There are a large number of rational,profit-maximizing investors who actively participate in the market.
• D)Investors react quickly and fully to the new information,causing stock prices to adjust accordingly.

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Definitions:

Psychopathic Deviate

A term often related to measures in personality assessments that indicate a tendency towards psychopathic behavior including lack of empathy, deceitfulness, and impulsivity.

Paranoia

A mental condition characterized by delusions of persecution, unwarranted jealousy, or exaggerated self-importance, typically elaborated into an organized system.

Schizophrenia

A mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Minnesota Multiphasic Personality Test

A psychological test that assesses personality traits and psychopathology to aid in the diagnosis of mental disorders.