$3$

Multiple Choice

$1$ point

Active trading in markets and competition among securities analysts helps ensure that:

Security prices approach informational efficiency.

Riskier securities are priced to offer higher potential returns.

Investors are unlikely to be able to consistently find under$-$ or overvalued securities$.$

$1$ only

$1$ and $2$ only

$2$ and $3$ only

$1,2,$ and $3$