In Tests of the Semistrong-Form EMH, It Is Not Necessary

question 16

True/False

In tests of the semistrong-form EMH, it is not necessary to use risk-adjusted rates of return.

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Definitions:

Securities Exchange Act

A U.S. law governing the trading of securities, aimed at protecting investors through transparency and fairness.

Securities Exchange Act

A U.S. law governing the trading of securities (stocks, bonds, and securities futures) to protect investors against manipulation.

Insider Trading

The unauthorized use of secret information for making profitable trades on the stock market to benefit oneself.

Exemption From Registration

A situation where a party is relieved from the requirement to register information or activities with a governmental or regulatory authority.