An Efficient Capital Market Is Best Defined as a Market

question 25

Multiple Choice

An efficient capital market is best defined as a market in which security prices reflect which one of the following?

• A)current inflation
• B)a risk premium
• C)available information
• D)the historical arithmetic rate of return
• E)the historical geometric rate of return

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Definitions:

Goodwill

The expected continuance of public patronage of a business.

Ethical System

A set of principles or guidelines designed to direct individual or collective behavior towards moral and ethical decision-making.

Motor Oil

A lubricant used in internal combustion engines to reduce wear and clean the engine from sludge and varnish.

Julia

A high-level, high-performance dynamic programming language designed primarily for technical and scientific computing.