Another Way to State the Efficient Market Hypothesis Is That

question 20

Multiple Choice

Another way to state the efficient market hypothesis is that in an efficient market,

• A) unexploited profit opportunities will never exist as market participants, such as arbitrageurs, ensure that they are instantaneously dissipated.
• B) unexploited profit opportunities will not exist for long, as market participants will act quickly to eliminate them.
• C) every financial market participant must be well informed about securities.
• D) only A and C of the above.

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Definitions:

Thermoreceptors

Thermoreceptors are sensory receptors that detect changes in temperature, enabling the sensation of warmth or cold.

Ciliary Muscle

A ring of smooth muscle in the eye's middle layer that changes the shape of the lens for focusing.

Suspensory Ligaments

Fibrous tissues that connect the lens of the eye to the ciliary body, adjusting the lens shape for focusing.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to the high density of cones, and no rods.