Asked by
FARHANA BEGUM
on Nov 07, 2024
Verified
If capital markets are efficient, then ________________________.
A) there is no reason to believe that prices are too high or too low
B) it is possible to profit regularly from publicly available information
C) prices will adjust slowly when reacting to new information
D) it is not possible to make money by playing the stock market
E) historical price trends will give you a good idea of where prices are headed in the future
Capital Markets
Financial markets where long-term debt or equity-backed securities are bought and sold, facilitating the raising of capital by companies and governments.
Efficient
Being effective without wasting time, effort, or expense.
Prices
The amounts of money expected, required, or given in payment for something.
- Grasp the Efficient Markets Hypothesis (EMH) and its implications for capital market pricing.
Verified Answer
MC
Learning Objectives
- Grasp the Efficient Markets Hypothesis (EMH) and its implications for capital market pricing.
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