According to the Semistrong Form of the Efficient Markets Hypothesis

question 84

Multiple Choice

According to the semistrong form of the efficient markets hypothesis, ________.

• A) stock prices do not rapidly adjust to new information
• B) future changes in stock prices cannot be predicted from any information that is publicly available
• C) corporate insiders should have no better investment performance than other investors even if allowed to trade freely
• D) arbitrage between futures and cash markets should not produce extraordinary profits

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Definitions:

Synaptic Vesicles

Small sacs within axon terminals that store neurotransmitters, which are released into the synaptic cleft during synaptic transmission.

Synaptic Cleft

The narrow gap between the presynaptic and postsynaptic neurons into which neurotransmitters are released to convey impulses across the synapse.

Presynaptic Terminal

This term refers to the end of a neuron that sends signals to a neighboring neuron across a synapse.

Sarcolemma

The cell membrane surrounding a muscle fiber, crucial for initiating electrical impulses required for muscle contraction.