Which of the Following Statements About Efficient Markets Is Correct

question 39

Multiple Choice

Which of the following statements about efficient markets is correct?

• A)In strong- form efficiency,all available information is rapidly incorporated into market prices.However,superior returns can consistently be earned on a share through lots of hard analytical work.
• B)In strong- form efficiency,the returns on a firm's bonds and shares should be identical.
• C)In weak- form efficiency,all public information is rapidly incorporated into market prices.
• D)In weak- form efficiency,analysing past price history of a company's shares will not enable an investor to earn an above- normal rate of return on the shares in the future.

---

Definitions:

Confidence Estimate

A range or single value derived from a sample statistic that covers an unknown population parameter with a certain confidence level.

T-Distribution

Is a type of probability distribution that is symmetric and bell-shaped, used in statistics when the sample size is small and the population standard deviation is unknown.

Degrees Of Freedom

The number of values in a calculation that are free to vary without violating any constraints, used to determine the shape of various statistical distributions.

Sample Mean

The mean of a dataset, found by adding up all the values and then dividing the total by the count of values in the set.