If Markets Are Efficient, It Is ________ When Trading on the Basis

question 59

Multiple Choice

If markets are efficient, it is ________ when trading on the basis of information.

• A) easy to ignore a random walk
• B) possible to make sustained profits
• C) impossible to make economic profits
• D) easy to generate economic rent
• E) difficult to understand fundamentals

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Definitions:

Informal Structure

The unofficial and unstated ways people and groups within an organization interact and organize work, which can contrast with the formal organizational structure.

Manager

A person responsible for controlling or administering an organization or group of staff.

Centralisation

The organizational structure where decision-making authority is concentrated at the top levels of management, often resulting in a hierarchy of power.

Decentralisation

Decentralisation is the dispersion of authority to make decisions throughout all levels of the organisation.