In a Perfectly Efficient Market

question 16

Multiple Choice

In a perfectly efficient market

• A) it is extremely unlikely that investors will profit based on technical trading rules.
• B) some people will continually earn high returns.
• C) profit opportunities are eliminated before the entire market can react.
• D) any gains based on patterns in past prices are merely due to luck.

---

Definitions:

Power Holder

An individual or entity that possesses the authority or influence to make decisions, direct others, and enforce rules within a given context.

Influence in Motion

The dynamic process through which individuals or groups exert power to sway or direct the behavior or beliefs of others.

Forecasting Uncertainties

The acknowledgment and analysis of the unpredictability inherent in attempting to predict future events, particularly in complex systems.

Contingencies of Power

The specific conditions or situations that influence the extent to which individuals or groups can use power effectively in an organization.