An efficient market can best be defined as:

Group of answer choices

A market where, on average, you cannot earn a return in excess of the required return for a given risk level.

A market where you can use public information to earn excess returns.

A market where short term interest rates are greater than long term interest rates.

None of the above.

A risk-neutral investor will

Group of answer choices

try to minimize the risk they are taking relative to their expected return.

ignore risk and try to maximize their expected return.

try to lower their risk by diversifying their investments

only invest in the risk-free asset, because they want to earn a guaranteed return over their holding period.

The _______ rate of return measures the change in your purchasing power over the holding period.

Group of answer choices

risky

real

general

nominal