A Level of Market Efficiency in Which All Relevant Information

question 21

Multiple Choice

A level of market efficiency in which all relevant information both public and private is fully and immediately reflected in security prices is called a ______ efficient market.

• A) strong-form
• B) semistrong-form
• C) weak-form
• D) perfect-form

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Definitions:

Operating Cash Flow

Money generated from the ordinary operations of a company.

Depreciation

The systematic allocation of an asset's cost over its expected useful life to account for its loss of value over time.

Tax Rate

The division of one's or a company's income that is allotted by the government for tax purposes.

Total Sales

This figure represents the aggregate revenue a company generates from selling its goods or services within a specific period.