In an Efficient Market,the Price of a Security Will

question 44

Multiple Choice

In an efficient market,the price of a security will:

• A) always rise immediately upon the release of new information with no further price adjustments related to that information.
• B) react to new information over a two-day period after which time no further price adjustments related to that information will occur.
• C) rise sharply when new information is first released and then decline to a new stable level by the following day.
• D) react immediately to new information with no further price adjustments related to that information.
• E) be slow to react for the first few hours after new information is released allowing time for that information to be reviewed and analyzed.

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Definitions:

AASB 141

This is the Australian Accounting Standards Board's standard related to Agriculture, providing the accounting requirements for agricultural activity.

IAS 41

International Accounting Standard 41, which governs the accounting for agriculture.

Estimated Costs

Costs that are predicted based on historical data, trends, and analyses, used for budgeting, planning, and decision-making purposes.