In an Efficient Market,the Price of a Security Will

question 21

Multiple Choice

In an efficient market,the price of a security will:

• A)react immediately to new information with no further price adjustments related to that information.
• B)react to new information over a two-day period after which time no further price adjustments related to that information will occur.
• C)rise sharply when new information is first released and then decline to a new stable level by the following day.
• D)always rise immediately upon the release of new information with no further price adjustments related to that information.
• E)be slow to react for the first few hours after new information is released allowing time for that information to be reviewed and analyzed.

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Definitions:

Different Languages

Refers to the variety of languages spoken or programmed around the world, emphasizing diversity in communication and coding.

Compiler

A program that understands both the syntax of the programming language and the exact structure of the CPU and its machine language.

Intermediate Form

A representation of a program partway between the source and machine code, used in compiling or interpreting the code.