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Prices of Securities Trading on the Grenadines Exchange React Rapidly

Question 1

Multiple Choice

Prices of securities trading on The Grenadines Exchange react rapidly to information; however, firms listed on the exchange cannot completely hedge their risks.The Grenadines Exchange is likely to have:


A) informational efficiency and allocational efficiency.
B) informational inefficiency and allocational efficiency.
C) informational efficiency and allocational inefficiency.
D) informational inefficiency and allocational inefficiency.

Correct Answer:

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