Which Statement Is True Concerning Alternative Efficient Market Hypothesis

question 20

Multiple Choice

Which statement is true concerning alternative efficient market hypothesis?

• A) The weak hypothesis encompasses the semi-strong hypothesis.
• B) The weak hypothesis encompasses the strong hypothesis.
• C) The semi-strong hypothesis encompasses the weak hypothesis.
• D) The strong hypothesis relates only to public information.
• E) None of the above (all statements are false)

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Definitions:

Debit Side

The left-hand side of a ledger account, recording increases in assets or expenses and decreases in liabilities or equity.

Account

A record in the general ledger that is used to collect and store debit and credit transactions.

Flow Of Accounting Data

The process by which financial information moves through an organization's accounting system to be documented and reported.

Ledger

A comprehensive collection of all accounts used by an organization, recording all financial transactions through debits and credits.