Which One of the Following Statements Is Correct Concerning Market

question 35

Multiple Choice

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

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

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Definitions:

Continuous Random

Pertains to a random variable that can take an infinite number of possible values in a continuous range.

Value In Interval

Refers to a number or a measurement lying within a specific range defined by a lower and upper boundary.

Concept

A mental grouping of similar objects, events, ideas, or people.

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.