Which of the Following Statements Is (Are)true If the Strong-Form

question 7

Multiple Choice

Which of the following statements is (are) true if the strong-form efficient market hypothesis holds?
I.Analysts can easily forecast stock price changes.
II.Financial markets are irrational.
III.Stock returns follow a particular pattern.
IV.Stock prices reflect all available information.

• A)I only
• B)II only
• C)I and III only
• D)IV only

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working individually.

Group Task

A collaborative effort where individuals come together to achieve a specified goal or complete a project.

Less Effort

Refers to situations or tasks that require minimal physical or mental exertion.

Groupthink

A psychological phenomenon where the desire for harmony in a decision-making group results in an irrational or dysfunctional decision outcome.