Which of the Following Is an Implication of the Efficient

question 6

Multiple Choice

Which of the following is an implication of the efficient market hypothesis (EMH) for investors?

• A) For the vast majority of people public information cannot be used to earn abnormal returns.
• B) Investors need to press for a greater volume of timely information.
• C) Effective EMH will always ensure higher levels of dividend for alert investors.
• D) The perception of a fair game market could be improved by more constraints and deterrents placed on insider dealers.

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Definitions:

Develop New Prospects

The process of identifying potential new customers who might be interested in a company's products or services.

Selling

The act of persuading someone to buy a product or service.

Preparation

The action or process of making ready or being made ready for use or consideration.