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podryga [215]
3 years ago
12

Which one of the following statements best defines the efficient market hypothesis? A. Efficient markets limit competition. B. S

ecurity prices in efficient markets remain steady as new information becomes available. C. Mispriced securities are common in efficient markets. D. All securities in an efficient market are zero net present value investments. E. Profits are removed as a market incentive when markets become efficient
Business
1 answer:
lubasha [3.4K]3 years ago
5 0

Answer:

The correct answer is letter "D": All securities in an efficient market are zero net present value investments.

Explanation:

The Efficient Market Hypothesis (EMH) states that neither public or insider information cannot help in an attempt to beat the market because stocks already show all available information possible. Thus, neither using technical or fundamental analysis could be useful to predict future stock price movement.  

<em>In other words, in a market under EMH all stocks are zero Net Present Value (present value inflows minus present value outflows) investment vehicles.</em>

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Answer:

Using the straight-line method, the book value at December 31, 2018 would be $53.760

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Dep-Acu      13.440 13.440 13.440 13.440 13.440

Book Value53.760 40.320 26.880 13.440 0

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natka813 [3]

Statistics are used in place of parameters for making decisions since they are simpler to collect.

<h3>What are the guidelines?</h3>

In general, a parameter is any feature that aids in describing or categorizing a certain system. In other words, a parameter is a component of a system that is crucial or useful for identifying the system or assessing its functionality, status, or other characteristics.

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To learn more about parameters, refer to:

brainly.com/question/13794992

#SPJ4

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