Which of the Following Is NOT an Assumption of Market

question 34

Multiple Choice

Which of the following is NOT an assumption of market efficiency?

• A) Instruments denominated in other currencies are perfect substitutes for one another.
• B) Transaction costs are low or nonexistent.
• C) All relevant information is quickly reflected in both spot and forward exchange markets.
• D) All of the above are true.

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Definitions:

Population

A complete set of elements (people, objects, transactions, etc.) that share at least one common characteristic.

AVERAGE(range)

A function used in spreadsheet software to calculate the arithmetic mean of a range of cells.

Mean Value

The average of a set of numbers, found by dividing the sum of all values by the number of values.

Statistical Thinking

An approach to understanding, interpreting, and communicating data through the use of statistical methods and reasoning.