An Efficient Market Is One Where ________

question 82

Multiple Choice

An efficient market is one where ________.

• A) prices of stocks move up and down widely without apparent reason
• B) prices of stocks remain low for long periods of time
• C) prices of stocks are unaffected by market news
• D) the price of a security is an unbiased estimate of its true value

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Definitions:

Inferior Information

Data or knowledge that is considered to be of lower quality, accuracy, or relevance.

Activity Cost

The cost associated with executing specific activities within a business process or department, often used in activity-based costing to allocate overheads more accurately.

Activity Driver

A factor that influences or contributes to the expense of certain business operations, often used in activity-based costing.

High-volume Product Lines

Product categories within a company that produce or sell in large quantities, typically generating significant portions of revenue.