An Asset Is Priced Efficiently When

question 24

Multiple Choice

An asset is priced efficiently when:

• A) some individuals can make excess returns using publicly available information
• B) no one individual can make an excessive return with public information
• C) any investor can make an excessive return with information only available to him or her
• D) no investor can make an excessive return with information not available to everyone

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Definitions:

Uninterested

describes a lack of interest or concern about something or someone.

Actor-Observer Effect

A psychological phenomenon where people tend to attribute their own actions to external factors while attributing others' actions to internal characteristics.

Videotaped Conversation

A recorded interaction between individuals on video, used for analysis or study.

Equal Participation

The concept that all members of a group have the same opportunity and responsibility to contribute to a process or activity.