47. Which of the following limits the ability of markets for insurance to distribute risk efficiently?
I. A person who is sick is more likely to purchase health insurance than one who is healthy.
II. A person who is covered by flood insurance is more likely to build a house on a beachfront that is often flooded.
III. A person with insurance may pay premiums and never collect any money from the insurance company.
A. I only
B. II only
C. I and II only
D. I and III only
E. I, II, and III
48. The efficient market hypothesis states that:
I. Stock markets reflect all available information about the value of stocks.
II. Changes in stock prices can be accurately predicted by investors.
III. Changes in stock prices are impossible to predict from available imformation.
A. I only
B. II only
C. I and II only
D. I and III only
E. II and III only
47. Which of the following limits the ability of markets for insurance to distribute risk efficiently?
I. A person who is sick is more likely to purchase health insurance than one who is healthy.
II. A person who is covered by flood insurance is more likely to build a house on a beachfront that is often flooded.
III. A person with insurance may pay premiums and never collect any money from the insurance company.
A. I only
B. II only
C. I and II only
D. I and III only
E. I, II, and III
48. The efficient market hypothesis states that:
I. Stock markets reflect all available information about the value of stocks.
II. Changes in stock prices can be accurately predicted by investors.
III. Changes in stock prices are impossible to predict from available imformation.
A. I only
B. II only
C. I and II only
D. I and III only
E. II and III only
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