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.

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Definitions:

Protestant Reformation

A religious and political movement in the 16th century that began as an attempt to reform the Roman Catholic Church and led to the creation of Protestant churches.

Industrialism

The social and economic system built on the production of goods and services by the use of industrial technology and factories.

Mass Schooling

The system of public education provided universally to a large population, aiming to standardize knowledge and promote societal integration.

Virtual Education

An educational experience that is conducted online, utilizing digital platforms to deliver instruction and facilitate learning remotely.