The Idea That Asset Prices Fully Reflect All Available Information

question 40

Multiple Choice

The idea that asset prices fully reflect all available information is known as the:

• A) fair price hypothesis.
• B) efficient market hypothesis.
• C) full information hypothesis.
• D) full price hypothesis.

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Definitions:

Retrograde Amnesia

The inability to remember experiences or learned information from before an injury happened or a disease started.

Anterograde Amnesia

A condition characterized by the inability to form new memories following the onset of the disorder, while memories from before the event remain intact.

Retroactive Interference

A memory problem that occurs when newly learned information interferes with the recall of previously learned information.

Retrograde Amnesia

A loss of memory-access to events that occurred, or information that was learned, before an injury or the onset of a disease.