Empirical Research Has Most Often Shown That Securities Markets Fall

question 22

Multiple Choice

Empirical research has most often shown that securities markets fall into the ____ category of market efficiency.

• A) strong form
• B) semistrong form
• C) weak form
• D) mostly semistrong from

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making or selling products.

Profitability

A financial metric used to assess the ability of a business to generate earnings relative to its revenue, assets, equity, or other financial metrics.

Liquidity

How effortlessly an asset can be turned into cash without altering its market price.

Periodic Inventory System

An inventory accounting system where the inventory level is updated and the cost of goods sold is calculated at the end of a period, rather than after each sale.