In Finance, an Efficient Market Is One in Which

question 24

Multiple Choice

In finance, an efficient market is one in which:

• A) prices are assumed to be correct.
• B) prices adjust quickly and accurately to new information.
• C) prices are the best allocators of capital in the macro economy.
• D) all of the above

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Definitions:

Butane

A saturated hydrocarbon with the formula C4H10, consisting of four carbon atoms linked in a straight chain or branched.

C3-C4 Bond

In organic chemistry, the covalent bond between the third and fourth carbon atoms in a carbon chain.

Newman Projection

A method of visualizing molecules in chemistry that shows the conformation of a chemical bond from the perspective of looking down the axis of the bond.

Hexane

A saturated hydrocarbon with six carbon atoms and a molecular formula of C6H14.