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4 . Market efficiency The potential for a security to generate returns is what generates a more profitable investment, since these returns result from price
Market efficiency The potential for a security to generate returns is what generates a more profitable investment, since these returns result from price increases and decreases that are larger than they should be based on the riskiness of the investment. Determine which category of informational efficiency each description best represents. Informational Efficiency Category Description Current market prices reflect all relevant information, whether it is known publicly or privately. Current market prices reflect all relevant publicly available information. Current market prices reflect all information contained in past price movements.
Market efficiency
The potential for a security to generate returns is what generates a more profitable investment, since these returns result from price increases and decreases that are larger than they should be based on the riskiness of the investment.
Determine which category of informational efficiency each description best represents.
Informational Efficiency Category
Description
Current market prices reflect all relevant information, whether it is known publicly or privately.
Current market prices reflect all relevant publicly available information.
Current market prices reflect all information contained in past price movements.
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi
6th Edition
0131986430, 9780131986435
