According to the Efficient Markets Hypothesis

question 40

Multiple Choice

According to the efficient markets hypothesis,:

• A) everyone can outperform the stock market indexes.
• B) when one investor outperforms the stock market index, another investor must underperform.
• C) ordinary investors should always follow the advice of market geniuses like Warren Buffet.
• D) no investor can consistently outperform the stock market indexes.

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Definitions:

Visual Cues

Environmental or situational indicators that are perceived visually, guiding behavior through visual information.

Subtle

Describing something so delicate or precise as to be difficult to analyze or describe; often implies complexity.

Spatial Reasoning

The ability to understand, reason, and remember the spatial relations among objects or space.

Replicable

Capable of being repeated or duplicated under similar conditions, a critical criterion for scientific research to verify results.