Which One of the Following Statements Is Correct Concerning Market

question 16

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A)New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock in an efficient market.
• B)In an efficient market,some market participants will have an advantage over others.
• C)If a market is efficient,arbitrage opportunities should be common.
• D)Real asset markets are more efficient than financial markets.
• E)A firm will generally receive a fair price when it sells shares of stock in an efficient market.

---

Definitions:

Collective Conscious

A compilation of collective ideologies, concepts, and moral stances that serve as a bonding agent among societal members.

Mechanical Societies

Mechanical societies, a term from Émile Durkheim, describe traditional societies characterized by similarities and a collective conscience, where solidarity comes from uniformity.

Organic Societies

Refers to societies that function cohesively, with each part working together, similar to an organism, often contrasted with mechanical or industrial societies.

Nonmaterial Social Facts

Aspects of social life that exist beyond the physical, including beliefs, values, norms, and social norms that influence human behavior.