In a Perfectly Efficient Market with Random Price Changes

question 2

Multiple Choice

In a perfectly efficient market with random price changes,

• A) changes in prices occur which may appear to be positive as well as negative
• B) price behavior may often be irrational
• C) mispriced securities will not occur
• D) highly alert investors will not have profit opportunities

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Definitions:

Fully Involved

A term often used in emergency services to describe a situation where a structure is fully engulfed in flames and fire.

Present Time

The current moment or period in which events are actually happening, often focused on in mindfulness practices.

Posttraumatic Growth

Enhanced personal strength, realization of what is truly important in life, and increased appreciation for life, friends, and family following trauma.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.