1. In an efficient market, the change in a company\'s share price is most likely
ID: 2813534 • Letter: 1
Question
1. In an efficient market, the change in a company's share price is most likely the result of: A. Insiders' private information. B. The previous day's change in stock price. C. New information coming into the market 2. Regulation that restricts some investors from participating in a market will most likely. A. Impede market efficiency. B. Not affect market efficiency. C. Contribute to market efficiency. 3. With respect to efficient market cheory, when a market allows short eling, the efciency of the market is most likely to: A. Increase. B. Decrease. C. Remain the same.Explanation / Answer
In an efficient market, the change in a company's share price is most likely the result of: insiders' private information. the previous day's change in stock price. new information coming into the market. new information coming into the market An efficient capital market fully reflects all of the information currently available about a given security in the company's share price. Regulations that restricts some investors from participating in a market will most likely. A. impede market efficiency. Reducing the number of market participant may impede market efficiency. With respect to efficient market theory, when a market allows short selling, the efficiency of the market is most likely to: A. increase. Reducing the restrictions on trading will allow for more arbitrage trading, thereby promoting more efficient pricing. A. increase. B. decrease. C.remain the same.
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