According to the Efficient Market Hypothesis,financial Markets Fluctuate Daily Because

question 45

Multiple Choice

According to the efficient market hypothesis,financial markets fluctuate daily because they:

• A) are inefficient.
• B) slowly react to new information.
• C) are continually reacting to new information.
• D) offer tremendous arbitrage opportunities.
• E) only reflect historical information.

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Definitions:

Atomic Sentences

Sentences that express a basic fact or idea without combining or including any logical operations or propositions.

Hypothetical Syllogism (HS)

A logical argument formed by two conditional statements and a conclusion that follows from chaining the conditionals together.

Modus Ponens (MP)

A logical argument form that asserts if "P implies Q" and "P is true," then "Q must also be true."

Modus Tollens (MT)

A logical argument form where the denial of the consequent leads to the denial of the antecedent, often structured as "If P, then Q. Not Q, therefore not P."