A Market Is Efficient If

question 13

Multiple Choice

A market is efficient if:

• A) investors are able to earn profits by trading on information.
• B) it adjusts steadily to new information.
• C) share prices fully reflect available information about the shares.
• D) available information can be used to earn returns beyond those that compensate for the risk involved.

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Definitions:

Parking Brake Circuit

This refers to the electrical or mechanical pathway that activates the parking brake, ensuring a vehicle remains stationary when parked.

Emergency Circuit

A dedicated electrical circuit designed to maintain operation of critical systems in the event of a failure or emergency situation.

FMVSS-121

Federal Motor Vehicle Safety Standard 121, which specifies requirements for air brake systems in heavy trucks to ensure safety through braking performance.

Stopping Distance

The total distance a vehicle travels from the time the brakes are applied until it comes to a complete stop, including both reaction and braking distances.