Which of the Following Situations Is Consistent with the Strong-

question 37

Multiple Choice

Which of the following situations is consistent with the strong- form version of the efficient markets hypothesis?

• A)Evidence indicates that,on average,investment fund managers do not consistently earn abnormal returns.
• B)You make consistent abnormal profits by trading stocks before the announcement of an unexpected rise in earnings.
• C)You make consistent abnormal losses by trading stocks before the announcement of an unexpected rise in earnings.
• D)You make consistent abnormal profits by trading stocks after the announcement of an unexpected rise in earnings.

---

Definitions:

Streamline

Simplifying procedures or methods to increase efficiency and reduce complexity or waste.

Divisional Structure

An organizational framework where operations are grouped based on distinct products, services, markets, or geographic locations.

Matrix Structure

An organizational structure that combines two or more types of structures, typically project-based and functional, to leverage the advantages of both.

Functional Structure

An organizational design that groups employees based on their job functions, leading to departments like marketing, finance, and operations.