Which One of the Following Statements Is Correct Concerning Market

question 44

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A)Markets tend to be more efficient when the frequency of price changes diminishes.
• B)If a market is efficient,arbitrage opportunities should be common.
• C)In an efficient market,some market participants will have an advantage over others.
• D)A firm will generally receive a fair price when it sells newly issued shares of stock.
• E)New information will gradually be reflected in a stock's price to avoid spooking investors.

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Definitions:

Proximity

The physical closeness or distance between people, objects, or locations, often influencing communication, interaction, or relationships.

Decision Maker

A person or group responsible for making choices or judgments that influence the outcome of a situation or organization.

Self-Serving Principles

Cognitive biases or behaviors that lead individuals to see things in a way that benefits them personally, often at the expense of others or the truth.

Socially Acceptable

Behaviors or norms that are considered appropriate and acceptable within a society or social group.