If the Financial Markets Are Efficient Then

question 48

Multiple Choice

If the financial markets are efficient then:

• A)stock prices should remain constant
• B)stock prices should increase or decrease slowly as new events are analysed and the information is absorbed by the markets
• C)an increase in the value of one security should be offset by a decrease in the value of another security
• D)stock prices will only change when an event actually occurs,not at the time the event is anticipated
• E)stock prices should only respond to unexpected news and events

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Definitions:

Visual Stimulation

The process of using visual cues or images to engage the visual sense, often for entertainment, education, or therapeutic purposes.

Behavior Genetics

The field of study focused on understanding how genetic and environmental factors influence individual differences in behavior.

Scientific Usage

The application of scientific knowledge, methods, and terminologies in specific fields or research activities.

Synthesizes

The process of combining different ideas, influences, or objects into a coherent whole.