Which of the following is (are) true? - 6814

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 Which of the following is (are) true?

A.  The Principle of Capital Market Efficiency states that differences between financial assets are measured primarily in terms of risk and return. Investors choose the highest return for a given risk level.

B.  The Principle of Comparative Advantage states that people apply the Principles of Self-Interested Behavior, Two-Sided Transactions, and Signaling to an environment characterized by similar financial assets, low transaction costs, and intense competition leads to capital market efficiency.

C.  The Principle of Valuable Ideas states that new ideas can provide value when first introduced, even in an efficient capital market.

D.  all of these answers are correct.

Solution Description

Which of the following is (are) true?