A Finding That _________ Would Provide Evidence Against the Semistrong

question 58

Multiple Choice

A finding that _________ would provide evidence against the semistrong form of the efficient-market theory.

• A) low P/E stocks tend to have positive abnormal returns
• B) trend analysis is worthless in determining stock prices
• C) one can consistently outperform the market by adopting the contrarian approach exemplified by the reversals phenomenon
• D) low P/E stocks tend to have positive abnormal returns and trend analysis is worthless in determining stock prices
• E) low P/E stocks tend to have positive abnormal returns and one can consistently outperform the market by adopting the contrarian approach exemplified by the reversals phenomenon

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Definitions:

Anecdotal

Pertaining to a short and interesting story or personal account, often used as informal evidence to support a point.

Duration

The total time period during which an event or condition exists or persists.

Reinforcer

Any stimulus that increases the likelihood of a preceding behavior being repeated.

Intervention

A method or technique used to alter the course of an issue or problem, often applied in clinical, educational, or social contexts to improve outcomes.