Active Trading in Markets and Competition Among Securities Analysts Helps

Multiple Choice

Active trading in markets and competition among securities analysts helps ensure that:
I. Security prices approach informational efficiency.
II. Riskier securities are priced to offer higher potential returns.
III. Investors are unlikely to be able to consistently find under- or overvalued securities.

A) I only
B) I and II only
C) II and III only
D) I, II, and III