When market participants use all available information
A) market prices become signals for financial and economic decisions.
B) spot prices converge to future prices.
C) prices of financial assets remain constant over long periods of time.
D) hedging is no longer necessary.
Correct Answer:
Verified
Q2: An asset's fundamental value equals
A)its face value.
B)its
Q3: Rational expectations involve the assumption that
A)market participants
Q4: If the dollar is expected to depreciate
Q5: If market participants rely only past stock
Q6: The gap between the yield on a
Q8: If traders in a market have rational
Q9: Which of the following statements is true
Q10: When market participants have rational expectations,
A)they use
Q11: Which of the following is NOT a
Q12: George is trying to forecast the future
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