An Efficient Capital Market Is One in Which

question 4

Multiple Choice

An efficient capital market is one in which:

• A) brokerage commissions are zero.
• B) taxes are irrelevant.
• C) securities always offer a positive rate of return to investors.
• D) security prices are guaranteed by the U.S. Securities and Exchange Commission to be fair.
• E) security prices reflect available information.

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Definitions:

Business

A structured effort by individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.

Creation

The act of bringing something new into existence, either through innovation or artistic expression.

Relationship Management

The practice of maintaining and improving relationships between an organization and its clients, customers, or stakeholders.

Emotional Intelligence

The capability to recognize, understand, manage, and reason with emotions in oneself and others.