The Efficient Markets Hypothesis Implies That in the Stock Market

question 179

Multiple Choice

The efficient markets hypothesis implies that in the stock market:

• A) everyone can earn more than everyone else some of the time.
• B) no one can systematically earn more than the average market return.
• C) people with more funds earn higher returns.
• D) people can use technical analysis to systematically earn high returns.

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Definitions:

Macon's Bill No. 2

A law enacted by the United States Congress in 1810, aiming to motivate Great Britain and France to stop their restrictions against U.S. shipping during the Napoleonic Wars by offering to resume trade with whichever nation lifted its restrictions first.

Barbary States

Historical term referring to the North African countries along the Mediterranean Sea, known for piracy and slave trade, particularly during the 16th to 19th centuries.

Tribute

Payments made by one nation or ruler to another, often as a sign of submission or for protection, or as part of a trade agreement.