Question: 4 . Market efficiency The potential for a security to generate returns is what generates a more profitable investment, since these returns result from price

4 .

Market efficiency

The potential for a security to generate returns is what generates a more profitable investment, since these returns result from price increases and decreases that are larger than they should be based on the riskiness of the investment.

Determine which category of informational efficiency each description best represents.

Informational Efficiency Category

Description

Current market prices reflect all relevant information, whether it is known publicly or privately.

Current market prices reflect all relevant publicly available information.

Current market prices reflect all information contained in past price movements.

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