Which of the Following Is an Implication of Market Efficiency

question 105

Multiple Choice

Which of the following is an implication of market efficiency?

• A) Resources are allocated among firms that put them to the best use.
• B) No investor will do better than the S&P 500 in any time period.
• C) No investor will do better than the S&P 500 consistently after adjusting for risk.
• D) No investor will do better than the S&P 500 consistently after adjusting for risk and transactions costs.

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Definitions:

Terminal Punctuation

Marks that signal the end of a sentence, providing clarity and structure to written communication.

Terminal Punctuation

Refers to the punctuation marks used at the end of sentences, such as periods, question marks, and exclamation points, indicating a pause or conclusion.

Terminal Punctuation

Marks such as periods (.), question marks (?), and exclamation points (!) used at the end of sentences to indicate full stops or to convey the tone of the statement.

Vendors

Individuals or companies that sell goods or services to consumers, businesses, or other organizations.