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Which of the Following Tend to Reinforce the Argument That

question 17

Multiple Choice

Which of the following tend to reinforce the argument that the financial markets are efficient?
I. Information spreads rapidly in today's world.
II. There is tremendous competition in the financial markets.
III. Market prices continually fluctuate.
IV. Market prices react suddenly to unexpected news announcements.


Definitions:

United States

A country in North America, consisting of 50 states and a federal district, known for its large economy and cultural influence worldwide.

Outstanding Shares

The total number of shares of a corporation that have been issued and are held by shareholders, including restricted shares owned by company insiders.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by deducting the accumulated depreciation or amortization from the original cost of the asset.

Fair Market Value

The price an asset would sell for on the open market when certain conditions are met, such as both the buyer and seller are knowledgeable, willing, and not under duress.

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