In an Efficient Market

question 130

Multiple Choice

In an efficient market:

• A)it is fairly easy to find stocks whose prices do not fairly reflect the present value of future expected cash flows
• B)unexpected news will cause a rapid change in prices
• C)information flows are random, both in timing and in content
• D)all the above

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Definitions:

Peripheral Fibers

Nerves located outside the central nervous system, involved in the transmission of sensory and motor signals to and from the central body.

Brady-

A prefix used in medical terminology to denote a slowness in rate or frequency, such as in bradycardia (slowness of the heart rate).

Hyper-

A prefix denoting above normal, excessively high, or increased in quantity.

Hypo-

A prefix denoting below, under, or less than normal, often used in medical terms to indicate a deficient or decreased state.