Markets in General Are Considered Efficient When

question 7

Multiple Choice

Markets in general are considered efficient when

• A) Prices adjust rapidly to new information
• B) There is a continuous market, in which each successive trade is made at a price close to the previous price.
• C) The market can absorb large dollar amounts of securities without destabilizing the prices.
• D) all of the above are true.

---

Definitions:

Trophoblast

The outer cell layer of a late blastocyst, which in placental mammals gives rise to the chorion and to the fetal contribution to the placenta.

Blastocyst

An early stage of mammalian embryonic development, characterized by a sphere of cells surrounding a fluid-filled cavity and an inner cell mass that will develop into the fetus.

Limb Buds

The early developmental structures in vertebrate embryos which will develop into the limbs (arms and legs).

Muscles Differentiate

The process by which muscle cells undergo specialization, acquiring characteristics specific to muscle tissue types such as skeletal, cardiac, or smooth muscle.