If the Prices of Securities Fully Reflect All the Information

question 48

True/False

If the prices of securities fully reflect all the information available,then passive investors are best advised to invest in index-based mutual funds (unit trusts)with the lowest administration costs.

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Definitions:

Exchange

The act of giving one thing and receiving another, especially of the same kind or value, in return.

Scarce

A condition or situation characterized by the limited availability of resources or goods, leading to competition for their acquisition or use.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing among options.

Alternatives

Different choices or options that are available in a decision-making process.