Stock Prices Fluctuate Daily

question 10

Multiple Choice

Stock prices fluctuate daily.In relation to the efficient market hypothesis,these fluctuations are

• A)inconsistent with the semistrong form of efficiency because prices should be stable.
• B)inconsistent with all forms of market efficiency.
• C)consistent with the semistrong form because new information arrives daily.
• D)consistent with the strong form because prices and information are controlled by insiders.
• E)consistent with all forms of market efficiency provided the prices do fluctuate on a daily basis.

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