Which One of the Following Statements Is Correct Concerning Market

question 35

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A) Real asset markets are more efficient than financial markets.
• B) If a market is efficient, arbitrage opportunities should be common.
• C) In an efficient market, some market participants will have an advantage over others.
• D) A firm will generally receive a fair price when it sells shares of stock.

Know the disclosure requirements under AASB 112.

Understand the concept of tax base in relation to the carrying amount of assets and liabilities.

Understand the concepts of buying on margin and short selling, including the calculations related to margin calls.

Comprehend the roles and processes involved in the issuance of new stocks including the roles of investment bankers.