If Financial Markets Are Efficient, Then

question 89

Multiple Choice

If financial markets are efficient, then:

• A)there is reason to believe that prices are too high or too low
• B)it is possible to profit regularly from analysing publicly available information
• C)prices will adjust quickly to correctly reflect new information
• D)there will be periods where expectations are too bullish and too bearish
• E)historical price trends will give you a good idea of where prices are headed in the near future.

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Definitions:

Completely

An adverb indicating something has been done in a whole, full, or total manner, without omission.

Abram Maslow

A psychologist famous for formulating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Hierarchy of Needs

A psychological theory proposed by Abraham Maslow that categorizes human needs into five sequential levels from basic physical requirements to the need for self-actualization.

Clinical Research

A branch of healthcare science that determines the safety and effectiveness of medications, devices, diagnostic products, and treatment regimens intended for human use.