According to the Semistrong-Form Efficient Market Hypothesis,which of the Following

question 28

Multiple Choice

According to the semistrong-form efficient market hypothesis,which of the following types of information are fully reflected in stock prices?

• A) Rates of return, trading volume, and news about the economy.
• B) Dividend and earnings announcements.
• C) Rates of return, trading volume, and block trades.
• D) Earnings announcements and rates of return.
• E) All of the above.

---

Definitions:

Demand During Lead Time

Demand during lead time is the total customer demand for a product while waiting for replenishment or delivery of new stock.

Review Period

The designated time frame within which a process or performance is evaluated.

Cycle Stock

Inventory that is replenished regularly in response to actual customer demand.

Safety Inventory

Additional stock kept on hand to protect against variability in demand or supply.