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:

Premium

The amount paid for a product or service above its nominal or face value.

Horizontal Acquisitions

A form of corporate acquisition where a company buys another company that operates in the same industry at the same level of the supply chain.

Synergistic Increases

Enhancements in value or performance achieved through the combination or cooperation of different entities, surpassing what would be possible individually.

Value

The importance, worth, or usefulness of something, often in economic terms.