Which Statement Best Explains the Semi-Strong Form of the Efficient

question 29

Multiple Choice

Which statement best explains the semi-strong form of the efficient securities market hypothesis?

• A)A market in which the prices of securities traded in that market at all times properly reflect all information that is publicly known about those securities.
• B)A market in which the prices of securities traded in that market reflect all information, whether publicly or privately known.
• C)A market in which the prices of debt securities traded in that market reflect all information that is privately known about those securities.
• D)A market in which the prices of equity securities traded in that market reflect all information that is privately known about those securities.

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

Restricted Fund

Funds that are designated for a specific purpose by the donor or governing authority, limiting their use by the recipient organization.

Investment Income

Income received from investments, including dividends, interest, rental income, and capital gains.

General Fund

The primary operating fund of a governmental entity used to account for all financial resources except those required to be accounted for in another fund.