A Financial Market Is Efficient If Financial Prices

question 116

Multiple Choice

A financial market is efficient if financial prices:

• A) fully and correctly reflect all available information.
• B) reflect information only available to traders.
• C) adjust to any information.
• D) allow for consistent short-term profits to be made.
• E) yield returns for owners of capital.

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Definitions:

Adenine

A nitrogenous purine base that is a component of nucleic acids and ATP.

Cytosine

A nitrogenous pyrimidine base that is a component of nucleic acids.

Thymine

A pyrimidine base found in DNA, paired with adenine in the DNA double helix.

DNA Encoding

The process by which genetic information is represented in the DNA using the sequence of four nucleotides (adenine, thymine, cytosine, and guanine) to instruct the development and functioning of organisms.