Which of the Following Statements Is Not Correct

question 4

Multiple Choice

Which of the following statements is not correct?

• A)An invisible hand leads buyers and sellers to an equilibrium that maximizes total surplus.
• B)Market power can cause markets to be inefficient.
• C)Externalities can cause markets to be inefficient.
• D)The invisible hand can remedy all types of market failures.

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Definitions:

Momentum

In finance, refers to the tendency of an investment to continue moving in its current direction, either up or down, based on recent performance.

Reversal Patterns

Technical analysis term referring to signals indicating a potential change in a security's price direction.

Semistrong Form

A form of market efficiency that implies that all publicly available information is already reflected in stock prices, including historical data and public news.

Current Stock Price

This refers to the present value at which a stock is traded on the market.