One Important Implication of the Efficient Markets Hypothesis Is That

question 9

Multiple Choice

One important implication of the efficient markets hypothesis is that most investors

• A)should avoid active trading.
• B)can benefit by purchasing high-beta stocks.
• C)should trade actively to help ensure the highest overall gain in their portfolios.
• D)should hold IPO stock issues for the long term.

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Definitions:

Internet

A global network of interconnected computers and servers allowing for the exchange of data, communication, and resources.

Participant Modeling

A therapeutic technique in which a therapist demonstrates a desired behavior to a client, who is then encouraged to imitate this behavior.

Effectiveness

The degree to which something is successful in producing a desired result or outcome.

Psychotherapy

A method of treating mental health problems by talking with a psychiatrist, psychologist, or another mental health provider.