An important implication of the idea that markets are efficient is that
A) an investor can make money by buying undervalued stocks and selling overvalued ones.
B) the price of a share immediately incorporates new publicly available information that affects its value.
C) dealers can ignore some new information on a share that affects its value.
D) an investor can make above average returns in the stock market by doing careful research of public information about selected stocks.
B
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In the above figure, a minimum wage of ________ would result in employment of ________
A) W2; L1 B) W2; L2 C) W1; L1 D) W1; L2
Which of the following are possible consequences when the government reduces government purchases to address an inflationary gap?
I. increase in the price of bonds II. increase in net exports III. decrease in the federal budget deficit (or increase the surplus) IV. decrease in the exchange rate A) I, II, III, and IV B) I and III only C) I, III, and IV only D) II, III, and IV only