Which Statement Is Consistent with the Efficient Markets Hypothesis

question 260

Multiple Choice

Which statement is consistent with the efficient markets hypothesis?

• A) The majority of stock mutual funds cannot outperform stock composite indexes.
• B) No mutual funds can outperform stock composite indexes at any time.
• C) No one can earn a return in the stock market.
• D) Technical analysis is the only way to beat the market over time.

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Definitions:

Entrepreneurial Journey

The path of creating and developing a new business venture, encompassing the challenges, successes, and experiences encountered by an entrepreneur.

Small Failures

Minor setbacks or mistakes that, while not catastrophic, can provide valuable learning experiences and opportunities for growth and improvement.

Market Segment

A subsection of a market comprised of individuals or organizations with similar characteristics, needs, or behaviors, often targeted with specific marketing strategies.

Uncertainty

The lack of clarity about future events that can cause entrepreneurs to take unreasonable actions.