The Efficient-Market Hypothesis

question 30

Multiple Choice

The efficient-market hypothesis

• A) implies that security prices properly reflect information available to investors.
• B) has little empirical validity.
• C) implies that active traders will find it difficult to outperform a buy-and-hold strategy.
• D) has little empirical validity and implies that active traders will find it difficult to outperform a buy-and-hold strategy.
• E) implies that security prices properly reflect information available to investors and that active traders will find it difficult to outperform a buy-and-hold strategy.

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