Which of the Following Would Be Inconsistent with an Efficient

question 123

Multiple Choice

Which of the following would be inconsistent with an efficient market?

• A) Information arrives randomly and independently.
• B) Stock prices adjust rapidly to new information.
• C) Price changes are independent.
• D) Price changes are random.
• E) Price adjustments are biased.

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Definitions:

Surrogate Lying

Involves making false statements or misleading claims on behalf of someone else, often to protect them or advance a mutual interest.

Social Relationships

The connections and interactions between individuals or groups within a society, shaping behavior, culture, and social structure.

Reciprocity

A principle or practice of mutual exchange and interdependence often considered in social, economic, and ethical contexts.

Code Of Ethics

A set of principles and guidelines aimed at helping professionals conduct business honestly and with integrity.