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.

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Definitions:

Transformational Grammar

A linguistic theory concerning how deep structures of language are transformed into various surface structures through grammatical rules.

Language

A system of communication that uses grammar and vocabulary to convey meaning through the use of spoken, written, or gestural symbols.

Sign Language

A language that uses manual communication and body language to convey meaning, primarily used by deaf and hard-of-hearing individuals.

Speak

The act of producing sounds that form words in order to convey information or express thoughts and feelings.