1. When investors say that the market is efficient, they mean that
a. the business cycles that underlie stock fluctuations occur in a somewhat predictable fashion.
b. the closing prices of all stocks can be found quickly and easily in the Wall Street Journal and in most daily newspapers.
c. securities consistently trade at prices very close to their intrinsic values.
d. industrial production, and overall productivity in the economy, is growing at a constant pace
2. The consumer durables sector tends to perform well when
a. interest rates are high.
b. unemployment rates are low.
c. the economy is in a recession.
d. disposable income is low.